Should £800,000 be invested in a roboadvisor or into a managed company like EQ investors?

09 May 2023

Question by David

Should £800,000 be invested in a roboadvisor or into a managed company like EQ investors?


Answered by Holly Mackay

Hi.
A robo adviser will manage the efficient investment of your money but it won’t consider tax, your plans, what you actually need this money to do for you, or other considerations. It will ‘divvy’ up the money and invest it in a sensible well-diversified pot of investments for you at a reasonable cost and give you ongoing access to this money and its performance using an app. EQ Investors offer financial advice but also have ready-made portfolios which are like a robo adviser, and are well-known for their sustainable options.

If you don’t need help with complex planning and feel pretty comfortable that you have the longer-term needs mapped out – and you just need a sensible low-cost way to get a diverse portfolio of investments which someone manages for you – then the robo advisers or a ready-made portfolio from someone like an EQ Investors is not a bad approach. You can research them and their performance, fees and customer reviews on our site.

But if you need financial advice then I would suggest you at least investigate some fixed fee one-off advice – particularly if pensions are involved. The tax and cashflow modelling and other similar things can make advice invaluable. So in short I think robos offer pretty credible solutions to invest a pot of money sensibly but they won’t look at this money in the round and think about it more holistically. If you need this plan and general financial overview then paying for some professional advice could be sensible.

Holly

Answered by

Holly Mackay

Founder and CEO of Boring Money

I’ve worked in investment markets for over 20 years. I started out at Merrill Lynch Investment Management and worked at a few big names before setting up my first business in 2008.