Robo isas - vanguard isa life strategy?

Dave05

Hi 

On my mission to look for (and overthink ) a s&s isa, i come across the vanguard isa life strategy equity funds, now im after a robo adviser purely because im new to the game and not confidant in DIY stocks and shares, i know some views on these robo advisors arnt the best in terms of performance though. Anyways i seen these life strategy equity funds from vanguard and it says ready made 'managed' portfolios for a fee, daft question but are these robo advised like money farm, wealthify, nutmeg and invest engine and interactive invester ? Just I've heard alot of reconmendations on vanguard? Also if anyone got any reconmendations on the other robo platforms that will be much appreciated 

Kind regards 

eskbanker

Vanguard is a fund manager and their popular LifeStrategy range are multi-asset funds that they offer, aimed at the inexperienced 'fire and forget' buy and hold investor who is after a single diversified product rather than managing a portfolio.  Such funds would need to be held on a platform, and Vanguard offer one of these too, although their funds will be offered by all the other mainstream investment platforms too.  Competing multi-asset funds are also available from other fund managers: https://monevator.com/passive-fund-of-funds-the-rivals/

Robo-advisers are companies that construct and sell their own portfolios, which could theoretically include some Vanguard holdings.

You'd either sign up with a robo adviser, or you could choose a multi-asset fund (such as VLS) and hold it on an investment platform, i.e. it would be one approach or the other.

https://www.moneysavingexpert.com/savings/stocks-shares-isas/#doitforme summarises the main robo players and the rest of that article also gives an overview of the approaches in the MSE style....

dunstonh

i come across the vanguard isa life strategy equity funds,

Just to be clear, the VLS funds are not specific to ISA.    And they are available on all whole of market platforms.  Often cheaper than the Vanguard platform.    There is also a version specific to IFAs that has been outperforming the OEIC version.  Although that wont apply to you heree.

 daft question but are these robo advised like money farm, wealthify, nutmeg and invest engine and interactive invester ?

Its worth noting that the robos do not give you advice.  They ask a handful of questions and point you to a portfolio (or several) that match the risk score of their questionnaire.  That is all.  No more than that.   And its also worth noting that risk questionnaires are notorious for being inaccurate because of misunderstanding. Indeed, the FCA do not allow IFAs to rely on them solely.   However, that is good as its going to be with a robo and in most cases, you already know your risk level.

The VLS range is like the portfolio that the robo would offer.    Expect, in the OEIC case, its a single fund with all the investments within it.   No management needed from you.   You just pick how much stockmarket you want  and choose your provider.

Dave05

eskbanker said:

Vanguard is a fund manager and their popular LifeStrategy range are multi-asset funds that they offer, aimed at the inexperienced 'fire and forget' buy and hold investor who is after a single diversified product rather than managing a portfolio.  Such funds would need to be held on a platform, and Vanguard offer one of these too, although their funds will be offered by all the other mainstream investment platforms too.  Competing multi-asset funds are also available from other fund managers: https://monevator.com/passive-fund-of-funds-the-rivals/

Robo-advisers are companies that construct and sell their own portfolios, which could theoretically include some Vanguard holdings.

You'd either sign up with a robo adviser, or you could choose a multi-asset fund (such as VLS) and hold it on an investment platform, i.e. it would be one approach or the other.

https://www.moneysavingexpert.com/savings/stocks-shares-isas/#doitforme summarises the main robo players and the rest of that article also gives an overview of the approaches in the MSE style....

Thanks very much in taking your time reply much appreciated, that does clear it up for me 

Where is best to choose a multi asset fund? 

We regards to robo investing im just stuck which to choose and hoping someone has had some experience on here with the ones listed  

Dave05

dunstonh said:

i come across the vanguard isa life strategy equity funds,

Just to be clear, the VLS funds are not specific to ISA.    And they are available on all whole of market platforms.  Often cheaper than the Vanguard platform.    There is also a version specific to IFAs that has been outperforming the OEIC version.  Although that wont apply to you heree.

 daft question but are these robo advised like money farm, wealthify, nutmeg and invest engine and interactive invester ?

Its worth noting that the robos do not give you advice.  They ask a handful of questions and point you to a portfolio (or several) that match the risk score of their questionnaire.  That is all.  No more than that.   And its also worth noting that risk questionnaires are notorious for being inaccurate because of misunderstanding. Indeed, the FCA do not allow IFAs to rely on them solely.   However, that is good as its going to be with a robo and in most cases, you already know your risk level.

The VLS range is like the portfolio that the robo would offer.    Expect, in the OEIC case, its a single fund with all the investments within it.   No management needed from you.   You just pick how much stockmarket you want  and choose your provider.

Thanks for the information again very much appreciated

I just can't decided which route would be best for me as a novice, i was 100%set on robo and still am to a degree but then u read comments off people saying they under perform then u have doubts ha

boingy

For a novice I'd suggest funds like the Vanguard LS are a better choice than anything Robo.

Dave05

boingy said:

For a novice I'd suggest funds like the Vanguard LS are a better choice than anything Robo.

Hi

So with these do u just pay in and vanguard manage/rebalance etc or do i need to have some sort of hand in it

dunstonh

Dave05 said:

boingy said:

For a novice I'd suggest funds like the Vanguard LS are a better choice than anything Robo.

Hi

So with these do u just pay in and vanguard manage/rebalance etc or do i need to have some sort of hand in it

The whole point of multi-asset funds is that the fund house makes the management decisions and does the work.   They are the simple option.   Just because a platform has around 30,000 investment options doesnt mean you have to have more than 1.  Multi-asset funds are designed to be a single fund solution.

masonic

Dave05 said:

boingy said:

For a novice I'd suggest funds like the Vanguard LS are a better choice than anything Robo.

Hi

So with these do u just pay in and vanguard manage/rebalance etc or do i need to have some sort of hand in it

It all happens within the fund itself. You select and buy the fund. That is all that's needed from you.

Jami74

Dave05 said:

boingy said:

For a novice I'd suggest funds like the Vanguard LS are a better choice than anything Robo.

Hi

So with these do u just pay in and vanguard manage/rebalance etc or do i need to have some sort of hand in it

I have some Vanguard Lifestrategy fund on the Vanguard platform in an ISA. As and when I choose I deposit some money and within a few days I own a bit more shares. The value bounces up and down a bit as is normal for investments. Fees are taken from my account every 3 months, if there's not enough cash they sell a bit of the fund to pay them although I believe you can pay them by direct debit from your current account. The Vanguard platform now has a minimum charge of £4 a month fees so depending on the size of your investment it might be cheaper to hold the Vanguard Lifestrategy fund on a different platform. That is pretty much the extent of my involvement in my S&S ISA, I am very much an ignorant novice.

Alexland

Robos are usually the simplest option as you just open the account and answer a few questions however while they are unlikely to be the cheapest option.

Holding a multi-asset fund (such as VLS or HSBC Global Strategy) is a bit harder as you have to pick a platform that is good value for the size and frequency for your contributions and then pick a multi-asset fund manager, then a risk level within that series then ensure you keep on top of paying the platform fees. It's more work but usually at least 1/3 cheaper on small accounts and on larger accounts can be significantly cheaper.