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Frequently Asked Questions

What's in my investment plan?

Our experts use a range of passive investment funds, like Mutual Funds and ETFs to build your plan. An investment fund is a bundle of lots of individual assets, like stocks, bonds or property, which you buy all in one go, making funds a cost-effective way to invest.

The mix of funds and investments in your Plan will depend on your attitude to risk. Low risk Plans will contain a higher percentage of low-risk investments like bonds. Higher-risk Plans will include more shares. Since financial markets are always changing, we’ll make adjustments to the mix of investments in your Plan from time to time.

We’ve created five investment Plans – from Cautious to Adventurous – so you can choose a level of risk that’s right for you. Find out more about what’s in each of these Plans by downloading the Plan Factsheets below.

Original Plan Factsheets

Cautious Plan [download pdf]

Tentative Plan [download pdf] 

Confident Plan [download pdf]

Ambitious Plan [download pdf]

Adventurous Plan [download pdf]

Ethical Plan Factsheets

Cautious Ethical Plan [download pdf]

Tentative Ethical Plan [download pdf]

Confident Ethical Plan [download pdf]

Ambitious Ethical Plan [download pdf]

Adventurous Ethical Plan [download pdf]

What do you mean by 'your capital is at risk'?

Capital is just another way of saying 'the money you invest'. There’s always a risk with investing that you might not get back everything you put in.

What's passive investing?

Why invest in one company, when you can invest in them all? That’s the essence of passive investing. Instead of putting all your eggs in one basket and relying on one particular company to perform well, you spread your money across all of them, so that you benefit from their collective strength. To do this, you need funds like ETFs and Mutual Funds (known as passive investment vehicles). These let your money track an index like the FTSE 100, which is composed of the 100 largest companies listed on the London Stock Exchange.

Passive investing is generally accepted as a more effective long-term strategy than the alternative, active investing, where fund managers try to pick the stocks they think will do best. The Dow S&P Indices show that as few as 14% of active fund managers actually manage to beat the market each year, when looked at over a long time period.

Do I own the underlying assets in my investment plan?

Yes, you will always own the underlying funds in your Wealthify Plan. There is no master fund into which your money is invested, as you’ll find with some services. This is an advantage for you, as it means you can see exactly what we are buying and selling for your Plan. We list the assets you own in the Plan detail screen, found in your dashboard and we send you a transaction receipt for every purchase and sale – so you always know where your money is.

Can I choose my own investments?

No, that’s what we’re here for. You only need to tell us your investment style and how much you want to invest, and we do everything else. Our investment team have pre-selected a range of passive funds, and programmed our automated investment system with algorithms (mathematical formulas) that build your Plan based on what you tell us your goals are.

Why is there cash in my investments?

Cash is a type of investment (or asset) itself. It’s a low risk asset, so the return on cash is typically low, but it’s a good way to help protect investors from losses if there’s an indication that markets might lose value. The amount of cash and cash equivalent assets in your plan will depend on the level of risk you choose and will be adjusted periodically in response to market movements.

What returns am I likely to get and are they guaranteed?

It is important to remember that with investing, returns are not guaranteed. There is risk associated with investing and you could get back less than you initially invest. To provide you with a sense of what you might expect from Wealthify’s risk-based investment styles, we do provide you with a prediction of performance when creating your Plan. Moody’s Analytics is an independent data provider, who assist in predicting what your Plan values could be in different market conditions over the period of time you plan to invest. It is of course impossible to predict the future, so the projections should only be taken as a guide, not a guarantee. Our investment team have provided factsheets for each investment style which outline their aims for each risk category and will give you an overview of what they are trying to achieve for you in each style. If you have any queries or concerns about the risks involved with investing it is best to seek advice from a financial advisor.

What is a benchmark and which ones do you use?

We publish our benchmarks in the valuations we send to all customers, to give you something to compare the performance of your plan against. 

We use ARC Private Client Indices as the benchmarks for the majority of our Plans, rather than an index such as the FTSE 100, because we feel it more closely matches the type of diversified investment plans that Wealthify offers. The ARC Private Client Indices are a peer group benchmark which show how other companies’ investment styles have performed. The Indices are based on real performance numbers from hundreds of other Plans.  Learn more about ARC Indices.

For our Cautious Plan, we use the Consumer Price Index (CPI), which is the UK’s main measure of inflation, or the speed at which the prices of goods and services bought by households rise and fall.

It’s important to remember that benchmarks and predictions are never perfect and past performance is not an indicator of future growth.


Here are the benchmarks we use for each of our five Investment Styles

Wealthify Cautious Consumer Price Index
Wealthify Tentative ARC Sterling Cautious PCI
Wealthify Confident ARC Balanced Asset PCI
Wealthify Ambitious ARC Sterling Steady Growth PCI
Wealthify Adventurous ARC Sterling Equity Risk PCI

Can my investments lose value?

With investing your capital is at risk and you could get back less than you put in. As an investor, it’s important to understand that stock markets have good periods and bad periods and that you shouldn’t panic at first sight of a bad period. You should think of investing as a long-term prospect, and remember that markets will generally see growth over the long-term.

Can I invest in an ISA?

Yes, if you are a UK resident (England, Wales, Scotland or Northern Ireland) you can use all, or part of your annual tax-efficient savings allowance of £20,000 (current tax year) to invest in a Stocks and Shares ISA with Wealthify. We don’t offer cash ISAs, Innovative Finance ISAs or Lifetime ISAs. Take a look at our ISA page for more information.

Can I create more than one investment Plan?

Yes, you can build as many Plans as you like. Some people prefer to keep their money all in one pot, others will prefer to split it into separate savings pots - Wealthify lets you do either. You can even choose different investment styles for each Plan. Whatever you decide, you can rest assured that there’s no additional charge for creating more than one Plan. You’ll only pay us a simple management fee of 0.6% per annum. Fund charges and transaction costs also apply – find full details on our fees page.

Are my investments protected?

Yes, they are. All your investments in our ISAs and General Investment Account products are held with our custodian bank, Winterflood Securities, a global financial services provider and part of Close Brothers Group, who have been trading for more than 130 years. The custodian of our Pension products is Embark Pensions, who are part of the Embark Group – the UK’s fastest-growing digital retirement platform.

Winterflood Securities and Embark both hold your assets separately (ring-fenced) from Wealthify, so  even if we went into administration, our creditors would not have a claim to your investments. 

The Financial Services Compensation Scheme may also cover the first £85,000 of your investments, however, it’s essential to understand that the FSCS doesn’t cover you if your investments do not perform as expected and you get back less than you originally invested. For more information visit https://www.fscs.org.uk/

Will I be informed if you make changes to my plan?

Yes, we will always let you know if we make a rebalance or substantial changes to your plan, as this can have a significant impact.

We don’t want to bombard you with emails, so it wouldn’t be practical to let you know each time we buy and sell shares in your plan. That said, every transaction appears in your Wealthify dashboard so you can monitor it there if you wish. 

Can I take a regular income from my plan?

There is currently no facility for this, but there may be in future. You can access and withdraw your money 24/7, although it’s worth remembering that making regular withdrawals will affect how quickly you reach the investment goals you set when you created your plan.

How quickly will my money be invested?

We typically invest your money within two working days of receiving it. However, it may take a couple of extra days for the investments to show on your dashboard, due to the investing process.

What is automated investing?

We’re not a fully-automated investment service. We automate certain parts of the investment process, like monitoring how well global markets are performing, using computers programmed with algorithms (mathematical formulas). This is more cost-effective than having highly-paid fund managers do it and we pass those savings onto you. Our experts use the market information along with their own their knowledge and experience, to make small adjustments to the mix of funds in your investment plan, where appropriate. So Wealthify uses a mix of smart algorithms and human expertise to make sure your plan stays on track.

What method do you use to calculate my return?

We’ll show your returns for each Plan as a percentage and actual monetary value, so you always know exactly how your investments are performing.

We calculate your returns using the ‘Time-Weighted Rate of Return’ (TWRR) method, which is widely used within the investment management industry. This is the most transparent way to show you your actual return (i.e. how much your money has grown) because it ignores any cash deposits or withdrawals you might have made in the meantime. In other words, it only tells you how much you’ve gained or lost from your investments, not what you’ve put in or taken out yourself.

Here’s an explanation about Time Weighted Rate of Return.