InvestEngine, an online wealth manager, has announced the launch of its DIY platform that allows investors to build and manage their own investment portfolios for free.
Described by the firm as a sophisticated, yet easy-to-use platform, InvestEngine DIY gives investors the tools to set a new standard of long-term investing – addressing a crucial gap in the market not filled by existing stock-trading apps and services.
The platform helps investors to invest in line with the goals of their overall portfolio, rather than speculating on individual stocks. Allowing users to see the bigger picture of their investment plan and spread their investment risk more appropriately.
The launch follows the rise in investing since the start of the coronavirus crisis – with a new survey conducted by InvestEngine revealing that 40 per cent of investors have invested more since the start of the pandemic.
The results show an emergence of a new community of younger, novice investors exposed to a hype-based approach to investing centered around trading hot stocks, with less concern for diversification and risk.
According to the survey, 54 per cent of 16–24-year-olds invest more frequently than they did 18 months ago. Yet, younger investors are being influenced by concerning external factors, citing media exposure and boredom as top drivers for investing more over the last 18 months. And when asked what they considered to be a good investment strategy for growing existing savings, only 18 per cent of respondents acknowledged that diversifying their portfolio was a good tactic for better investing.
Simon Crookall, Founder of InvestEngine, says: “It’s exciting to see that people are increasingly realising that investing is no longer reserved for the experts and those with a significant amount of money.
“Yet, while many trading apps have helped to democratise investing, they have failed to fulfil the responsibility of educating investors on the importance of diversification and a considered approach to risk.
“Our platform will continue to democratise investing, while also providing a blueprint for investors to build and manage their own diversified portfolio of ETFs, avoiding the temptations and risks of individual stock-picking.
“We think a DIY investment service that focuses on building diversified portfolios to achieve better long-term returns offers a better approach for wealth-building than speculating via a trading app.
“We are working to set a new standard for long-term investing by providing a DIY platform with the goal of creating more educated, better investors, while also increasing accessibility by offering lower fees, more transparency and using cutting-edge technology and automation to take the hassle out of investing.”
And this is only the beginning — we’ll be adding an ISA and other new features in coming months, with even more powerful functionality going forward.”