It couldn’t be simpler. All you need to do is click on the green ‘Get started’ button, which can be found in the top right corner of all pages on the InvestEngine website, or follow this link.
You then answer a few quick questions on your financial situation, investment goals and time horizons and tolerance to risk. From there, our carefully crafted algorithms will select the best investments for you – allowing you to sit back, relax and enjoy the rewards of your investment.
If you are a UK resident and over 18 years old, you can open an InvestEngine ISA or General Investment Account.
You can only open an ISA if you are resident in the UK and that excludes residents of the Channel Islands or the Isle of Man.
You cannot open an InvestEngine account if you are a U.S. citizen.
No, we do not do any credit checks on you.
As part of the account opening process we must do an identity check and we will ask you about your financial circumstances and your investment goals. This is a regulatory requirement but more importantly it allows us to give you the best service we can.
Although it is optional, setting targets for your portfolios in advance makes you far more likely to achieve them in the future.
Of course, these targets must be realistic and achievable. An investing game plan only really works if you are able to stick to it!
But even if your target is a little vague, it will provide direction and meaning to your investing efforts; not to mention motivation to keep your goals safely on track.
And as life moves on you can always update your portfolio targets at any time.
Don’t worry, though, if you overlook setting a target for your portfolios. We believe any form of investing is better than none at all.
Everyone has a tendency to take risks; it is just that this varies from one individual to another.
One way of looking at risk is whether you drive your car in the slow lane or the fast lane.
With investing, your risk tolerance can be used to determine the percentage of your portfolio that is exposed to different asset classes. For instance, investing in equities is more akin to driving in the fast lane. You may get from A to B quicker - generating higher returns - but there is a greater associated risk. While broadly speaking, bonds are in the slow lane of investments; a safer option that tends to give a lower but more guaranteed return than shares.
It is all to do with the ‘risk/return trade-off’. Risk means you have the possibility to lose some, or even all, of your original investment. Low levels of risk are associated with low potential returns, while high levels of risk are associated with high potential returns.
Your risk profile therefore is important in helping to establish the right mix of asset classes for your portfolio.
Risk is an inherent part of investing. In order to get a reasonable return on an investment, risk has to be present.
Changing the riskiness of your portfolio will mean that it will become stocked with a different blend of investments.
For instance, a move up the risk scale will provide exposure to riskier assets, such as equities, that will provide high return potential. The performance of these riskier investments may be volatile and you must be willing to accept large, and sometimes dramatic, falls in value to achieve higher returns in the long run.
Equally, if you opt to become a more cautious investor, your portfolio will be populated with a greater number of conservative investments like bonds that deliver lower but more guaranteed returns.
There is no right or wrong answer when it comes to risk; it is just a personal preference. Although you should always factor in your own circumstances when considering risk; for instance, your age and proportion of your wealth that you intend to invest. As an example, when you get older you might want to have a more risk-averse portfolio to minimise your investment risk.
If you want to find out more about your risks, please read our risk disclosure statement.
The simple answer is yes. At the initial setup stage, we ask you to establish your risk preference. Our sophisticated algorithms will use the information, along with your investment goals and age, to allocate the optimal blend of exchange-traded funds for your portfolio.
You can, however, once you are up and running with InvestEngine change the riskiness of your portfolio at any time simply by adjusting the asset allocations within it. If you choose to overlook our recommendations, though, we will issue an alert; this will warn you that you may not have selected the most optimal portfolio.
This is because your risk tolerance is used to determine the percentage of your portfolio that is exposed to different asset classes. For instance, a greater percentage of equities in a portfolio will mean more investments that will likely generate higher returns but with greater risk and volatility along the way. Bonds tend to be a safer investment option; delivering lower but more guaranteed returns than shares.
You should also never change the riskiness of your portfolio if you are merely trying to time the market. Studies have shown that even professional investors cannot time market highs and lows. Investors who do try almost always hurt their performance over time.
The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest. Learn more about the risks
InvestEngine (UK) Limited does not provide investment advice, or give recommendations. If you are unsure of the risk or of the suitability of an investment, you should seek advice from an independent financial adviser.
InvestEngine® is a trading name and registered trade mark of InvestEngine Limited. InvestEngine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority. The Firm Reference Number is 801128. InvestEngine (UK) Limited is incorporated in the UK with company number 10438231 and has its registered office at Lawford House, Albert Place, London, United Kingdom.