Top 5 Robo-Advisors in the UK

Robo-advisors, also known as virtual financial advisors, have surged in popularity as they offer a low-cost and an easy way to manage an investment portfolio. Additionally, they give you access to wealth management services previously reserved for the ultra-wealthy including access to a licenced financial planner and tax loss harvesting. Consequently, new firms are entering the market and established robo-advisors are increasing their service offering. This can make it difficult for you to choose the best robo-advisor.

In this post, we look at some of the top-rated robo-advisors you may want to consider:

1. Nutmeg

Nutmeg is the largest digital advisor in the UK with more than £1 billion in assets under management. It invests in three asset classes – fixed income, equity and money markets. The robo-advisor offers two investment styles – fully managed portfolios and fixed allocation portfolios – all of which are diversified across asset classes, sectors, and countries.

Fully managed portfolios are built and managed by Nutmeg’s in-house investment team. Fixed allocation portfolios, on the other hand, are developed by the robo-advisor’s team but with no ongoing strategic intervention.

The company charges an annual fee of 0.25% to 0.75% of an investor’s portfolio value.

2. Wealthify

Wealthify, part of Close Brothers Group, is a robo investment service that uses low-cost investment options including mutual funds and ETFs. With this robo-advisor, you can invest with as little as £1 or as much as £1,000,000.

Similar to other robo-advisors, Wealthify requires you to complete a risk questionnaire to create your investment portfolio. Once the portfolio has been created, the robo-advisor employs a team of investment experts to manage it.

Wealthify charges an annual fee ranging from 0.4% to 0.7% of the total value of your investments.

3. Moneyfarm

This is another robo-advisor behemoth with more than £260 million in assets under management. It builds you a personalized, diverse portfolio based on your answers to a risk-assessment questionnaire. The investment portfolio consists of a mix of asset classes including equities, commodities, and bonds among others.

The portfolios are built and managed by a team of experts known as the Asset Allocation Team. The team tracks performance against your investment goals and rebalances your portfolio when necessary. The robo-advisor’s annual fees range from 0.4% to 0.7% of your portfolio.

4. Scalable Capital

Scalable Capital is a relative new fintech company based in London and Munich. It was established in 2016 and currently has £200 million in assets under management. It uses Exchange Traded Funds (ETFs) to invest in different asset classes including equities, bonds, stocks, real estate and commodities.

The robo-advisor allows you to open an Individual Savings Account (ISA) and/or a General Investment Account (GIA). It charges a fixed annual fee of 0.75% plus a cost of investing in ETFs which is 0.25% of your portfolio’s value.

5. Wealth Horizon

Wealth Horizon, a subsidiary of Aberdeen Asset Management, is one of the best robo-advisors in the UK for a good reason. It does not only build and manage your investment portfolio but also allows you to access a human financial advisor when you need financial advice. The robo-advisor invests in several asset classes including equities, bonds, stocks, and cash among others.

The company charges an initial fee of 0.25% and an annual fee of 0.93% of your portfolio’s value.

These are just some of the best robo-advisors in the UK. However, it is important to note that the best digital wealth management advisor will vary from investor to investor depending on their needs and financial situation.

Published by Kidal Delonix (1197 Posts)

Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.

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