Wealthify

mrs_T

I invested part of an inheritance in a wealthify s&s ISA Feb 2020, confident style. I have topped it up since but it has never done anything but lose money and is currently only worth 96% of what I've put in. I don't need to access the money for the next 2 years at least.  Should I hold on or call it quits?

eskbanker

You accepted the risk of significant fluctuations in value but are concerned at a drop of 4%?

Having said that, if you're likely to need the money in 2024, you shouldn't have invested in 2020, and 2022 leaves even less time for growth, but it's potentially a worse decision to get out now than it was to invest in the first place....

Albermarle

You should hold on and preferably longer than 2 years. You might consider transferring it to another provider. as unfortunately, Wealthify portfolios have not been one of the best performers recently.

Robo performance: January 2020 - June 2022 | Boring Money

On the other hand of course, 'Past performance is no guarantee of Future performance' 

mrs_T

I have already held for two and a half years and intend to keep the money invested for at least another two years. My concern is not just the current 4% loss but that so far it has never earned me anything.

masonic

mrs_T said:

I have already held for two and a half years and intend to keep the money invested for at least another two years. My concern is not just the current 4% loss but that so far it has never earned me anything.

Not strictly true, it's just the losses have exceeded the income. If you'd opened in February 2020, then it should have been in positive territory between ~November 2020 and ~May 2022. The fact you are now down 4% suggests it was one of the lowest risk options, which limited its ability to grow following the pandemic crash and similarly wouldn't be expected to bounce back strongly over the next couple of years. Will it perform better than a savings account between now and 2024? I don't know, it could go either way.

Oasis1

Try -9%... I'm hoping it'll recover and I can withdraw without a loss. It was my first forray into investing.

masonic

Oasis1 said:

Try -9%... I'm hoping it'll recover and I can withdraw without a loss. It was my first forray into investing.

You prompted me to log in and check mine (made only for the cashback). I'm actually up 1.36% from my investment made in mid-July. I thought it would be in negative territory for sure. Thanks Kwasi for trashing the pound!

alternate

Usually when you open these, their risk assessment questionnaire suggests a minimum investment term of 10 years.

Looking at their published figures - they don't seem to be doing any worse then other robo funds like Nutmeg etc.  It is just market turmoil.

fourmarks

mrs_T said:

I have already held for two and a half years and intend to keep the money invested for at least another two years. My concern is not just the current 4% loss but that so far it has never earned me anything.

Well, yes it did, but you left it there and didn't take the profit, your fault not theirs. Now it is showing a loss, if you sell now your actions will incur an actual loss and the fault for that will be your timing. I'm sorry, I may be being too harsh but at the moment it seems every other thread on here is someone bemoaning their fate because the financial markets have had the temerity to go down instead of up. It was ever thus. If it's any consolation my losses with Wealthify, over a similar period are running at just over -5%, so we wait for the slow climb back up.

Albermarle

alternate said:

Usually when you open these, their risk assessment questionnaire suggests a minimum investment term of 10 years.

Looking at their published figures - they don't seem to be doing any worse then other robo funds like Nutmeg etc.  It is just market turmoil.

In the 18 months from Jan 21 to June , fo medium risk funds.
Wealthify + 0.4%
Nutmeg 0%
Moneybox +10%
VLS 60 + 4. 5%
HSBC + 7.5%
AJ Bell + 10%
Santander minus 5%

Oasis1

Albermarle said:

alternate said:

Usually when you open these, their risk assessment questionnaire suggests a minimum investment term of 10 years.

Looking at their published figures - they don't seem to be doing any worse then other robo funds like Nutmeg etc.  It is just market turmoil.

In the 18 months from Jan 21 to June , fo medium risk funds.
Wealthify + 0.4%
Nutmeg 0%
Moneybox +10%
VLS 60 + 4. 5%
HSBC + 7.5%
AJ Bell + 10%
Santander minus 5%

So can we deduce Wealthify aren't quite as effective in fund management?