Total Investments Newbie - HELP!!

cska

I am totally new to investing but I have some money to save long-term (I'm 20) and so wanted to dip into investments to see how I may be able to profit. However, I know absolutely nothing about investing and was looking for some advice or links to threads with similar OPs/Advice (I can't seem to find anything at first glance but I know some forumites may know a place!)

I signed up for my first S&S ISA with Wealthsimple - I know their fees are pretty high but I benefitted from the £100 cashback offer after depositing £1000 lump sum. I gather it's one of those robo-funds that does everything for you.

Just wondering what to do really? I'v heard a lot about other robo-funds etc. as well as HL... have no idea what it is though!

Thanks guys

James145

With a robo-adviser, they'll choose the funds for you based on your risk profile, which are normally tracker funds (so just invest broadly into an index, rather than a fund manager choosing the individual shares).

HL is Hargreaves Lansdown, and it's a platform. With a platform, you open an account and can then invest in whatever funds/shares you like, so due to your experience level I would tread carefully and choose a multi-asset fund at first (such as Vanguard LifeStrategy).

As you have already invested in an ISA with Wealthsimple, you won't be able to invest in another ISA this tax year, unless you transfer from Wealthsimple to HL/another provider.

cska

James145 wrote: »

With a robo-adviser, they'll choose the funds for you based on your risk profile, which are normally tracker funds (so just invest broadly into an index, rather than a fund manager choosing the individual shares).

HL is Hargreaves Lansdown, and it's a platform. With a platform, you open an account and can then invest in whatever funds/shares you like, so due to your experience level I would tread carefully and choose a multi-asset fund at first (such as Vanguard LifeStrategy).

As you have already invested in an ISA with Wealthsimple, you won't be able to invest in another ISA this tax year, unless you transfer from Wealthsimple to HL/another provider.

So Vanguard is also a platform then. Is the LifeStrategy a fund which you can just put your money in without moving about? I think I'll keep my money with Wealthsimple for a year if only for the cashback on £1000. But will certainly look into Vanguard for the next financial year

dunstonh

Wealthsimple is in the financial press today because of its financials.
Like most robo-advice firms, it is losing money. However, the 2017 figures are rather interesting. It posted a £2.3million loss in 2017 against a revenue of £696. That is not a typo.

HappyHarry

dunstonh wrote: »

Wealthsimple is in the financial press today because of its financials.
Like most robo-advice firms, it is losing money. However, the 2017 figures are rather interesting. It posted a £2.3million loss in 2017 against a revenue of £696. That is not a typo.

4 employees
£818,618 in Salaries
£93,415 in Travel & entertainment expenses
£5,604 spent on technology

£696 income from September 2017 to December 2017.

That's an interesting set of accounts. I think I may be in the wrong job

tacpot12

Given that WealthSimple had high fees, but an attractive account opening offer, you were clearly intending to move to another provider (with low fees) at the earliest opportunity, e.g. 6th April 2019. I do hope WealthSimple last that long.

And ask for a copy of "A random walk down Wall Street" by Burton Malkiel for Christmas.

Albermarle

You could have a look at this site as a starter.;)
https://www.moneysavingexpert.com/investments/

shinytop

After reading a few bad news threads on this forum I have concluded that any organisation with "wealth" in its name should be avoided like the plague for anything to do with finance or investments ...

cska

Hi there, sorry for the late reply! The only issue is that the bonus will only be honoured in November or something according to the terms of the offer. Even though it’s been paid into my account if I close or move the money elsewhere at this stage it will be deducted from my interest.