Which provider should I swap my Investec Click & Invest ISA to?
11 July 2019
Question by Michael
I have about £100,000 invested in an ISA with Investec Click and Invest. They are closing their Click and Invest accounts and I have to find somewhere else to invest the money. Which are some providers of a similar nature, i.e. a managed ISA fund, preferably ones which can be set up and monitored online? I am considering either medium risk or high risk accounts.
Answered by Holly Mackay
I was surprised to see Investec Click and Invest shut down. And I'm sorry you find yourself in this position, looking for a platform of a 'similar nature'.
True Potential Investor is a very large financial advisory firm, which also takes DIY investor customers and will put them into pre-packaged portfolios, which they do manage for them on an ongoing basis. Otherwise, most of the groups offering portfolios which are continually managed and tweaked for you, are the newer and more digital start-ups often called 'robo advisers'.
If you're not married to the idea of a managed option, maybe take a look at the AJ Bell Youinvest platform, which is well priced and well rated by its customers. They have what they call 'ready-made portfolios', which will guide you into a mix of investment funds within your ISA. As I mentioned, this is not managed on an ongoing basis. So it will be for you to check in and see that this is perhaps re-balanced, and to check in once a year to see that the funds are still considered to be doing a good job.
Investec Click and Invest was an active option. So if you're looking for a lower cost option than this, maybe consider passive investing (you can read more about this here). Though you may potentially sacrifice some of the higher gains of active funds (although of course these aren't guaranteed). Inactive funds may well end up costing more, and performing less. If you'd be interested in a passive investment approach an option could be to open an ISA with an investment platform - these could be Hargreaves Lansdown, Fidelity, or AJ Bell Youinvest - and then put what we call a multi-asset fund inside your ISA. Now you can get these from groups such as Vanguard or BlackRock, and these will be managed and tweaked for you on an ongoing basis, to give you an access to a mixed bag of global shares and investments. They are what we call passive.
If you'd like to make you own comparisons between the options out there, take a look our Best Buys page to get all the details on different providers.
Hope this is helpful.