Wealthify’s mission is simple – we want to democratise investing, by which we mean make investing accessible and affordable to everyone.
For a long time, the type of service we offer (known in investment-speak as discretionary wealth management) was the preserve of the rich. Clients could need as much as £500,000 before they’d even get an appointment to open an investment account and they’d need to attend a face-to-face meeting and fill out reams of paperwork.
But all that has changed. Thanks to companies like Wealthify, it’s now possible to start investing with just £1 and get a similar type of investing service as those wealthy investors, where experts build you an investment plan and manage it on your behalf. As for the meetings and paperwork, they’re history too.
Far from being a gimmick, a £1 Wealthify investment plan gets you about 10 investment funds, containing as many as 11,000 investments in total, including things like shares and bonds. As well as different types of investments, your plan is also well-travelled, containing investments from lots of different regions, from the UK, US and Europe, as well as a few from Japan, Asia and other emerging economies, so it’s a truly global investment plan. We also treat it in exactly the same way as every other investment plan we manage.
The only notable difference between a £1 plan and a larger plan, is your £1 plan will hold a higher proportion of cash, around 50%, but that decreases the more you invest, and when your plan reaches £100, the cash percentage should start to look similar to our target levels, which at time of writing are around 5-8%.
All this means that no matter whether you invest £1, or £1 million, Wealthify will build you a diversified investment plan and manage it for you every day.
So yes, you can become a bona-fide investor with £1, but does that make you a SERIOUS investor?
It’s worth remembering that investing is usually about reaching long-term financial goals, so you should consider what yours are and how much you need to invest to reach them.
Whatever your goal is though, a £1 investment isn’t likely to help you reach it anytime soon. By our reckoning, £1 will grow by 0.78p over ten years on a medium risk plan, assuming 5.76% annual growth. So, not quite enough to retire on. Why not try out our investment calculator and see what your savings could achieve?
Investment can go down in value and you could receive back less than invested.
Investing is for everyone.
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The comments and opinions expressed in this article are the author's own and should not be taken as financial advice from Wealthify.