We gathered together 5 of the main robo providers and put this challenge to them. How can we inform people about what they might make? Without forcing them to read a thesis along the way?
We decided to look at performance across three different sorts of portfolios.
Mild. This is the butter chicken. The portfolios they have which are most like cash.
Medium. The Balti. The portfolios they have which most closely match what a blend of half shares and half cash would look like.
Spicy. The Vindaloo. The portfolio which behave most like the main 100 shares listed in the UK.
Most things in life are relative. So we need to know what to show these returns against. What the ‘benchmark’ is. Rather than use some gobbledygook investment construct, we chose the Santander 123 account and the FTSE 100 at the other end of the scale. Cos let’s face it most of us weigh up investing against sitting in cash. It’s not as safe so how much better are we likely to do?
This short factsheet is our first attempt to show you what you need to know. Without going overboard. We have only been able to include those providers which have been doing this for more than 12 months – any shorter and it’s totally pointless to talk about it! If you’re a robo and we haven’t included you – please get in touch. The more the merrier and we don’t have any hidden selection criteria – we want to show customers the broadest range possible.
We can do better. If you have any feedback about what information you’d like to see, please do get in touch!