We often get asked by potential investors about our fees and what exactly we do for the money you pay to invest with us.
Many of these questions ask, “why should I pay you to invest my money for me” or “can’t I get it cheaper if I go direct?”.
The answer is yes, it can be cheaper if you invest directly, but there are benefits to investing through a financial advice platform like ours.
Investing can be confusing, especially for first time investors. Many companies try to overcomplicate things even further by using lots of unnecessary jargon and complex fee structures.
If you can overcome this, you’ll then need to choose what to invest in to ensure your portfolio is diversified – and this assumes investing your money is right for you in the first place!
That’s why people choose to come to get financial advice with us here at evestor rather than go it alone. To cut out the confusion and make sure they’re making the most out of their money to help them achieve their goals.
Below, we’ll show you what you get when you invest with evestor.
What are our fees?
Before we talk about what you get for the money you pay us, let’s talk about what that cost is.
What you pay in fees will have a massive impact on your returns, and we’re proud to offer our investors an ongoing annual fee of less than 0.53% compared to traditional advisors* at 2.56%.
Using Portfolio 1 as an example, our 0.52% annual fee is broken down into 4 sections – our management fee (0.25%), the product fee (0.10%), the transaction costs (0.04%) and our fund fee (0.13%)
Our management fee is the charge for us to manage your investments. With our fee being this low, it means we can keep our overall costs down. We will delve into the specifics of what you get for your management fee in the next section. The product fee is what our product provider charges for providing our investors with their ISA, SIPP or GIA. Our ISA and SIPP are known as tax-efficient wrappers which mean that any returns you make on an investment you hold within them is protected from tax.
The transaction cost covers the fee charged when the investments are purchased and sold.
Finally, there’s the fund fee. This is the fee you pay to invest in the range of funds our portfolios invest it. Each fund’s charge varies, which is why the overall fee you pay can vary, with our maximum fee being 0.13%
What we do for your money
Now you know what we charge, what exactly do you get for that cost?
One of the most difficult decisions with investing is actually deciding who or what you want to invest your money in. These decisions can be difficult and time-consuming. If you invest with us, we will allocate the assets (which essentially means choose the investments) inside our portfolios – we do all the hard work for you! We have 3 portfolios created to maximise the chance of returns while maintaining the level of risk that’s right for you.
We’ll also annually rebalance your portfolio, so if one of the funds held in your portfolio is doing really well it might become ‘overweight’ which essentially means you’ll be holding too much of it for your risk level. We will sell or buy more units in funds to bring your portfolio back in line with what you should be holding, according to your risk level.
A risk level to suit you
We know that all investors are different.
Some have no experience and don’t want to take a lot of risk with their money. Others, however, are comfortable taking more risk with the potential for more return. That’s why we offer 3 portfolios with varying risk levels – low risk, medium risk and high risk.
Our advisers will see what experience you have and compare many other factors to see which risk level be best for you.
Diversification means spreading your money across lots of different investment types and different markets across the world. This helps to minimise and control risk, because if a specific market or industry went down in value, only a small amount of your investment would be impacted rather than the whole of your investment value. It’s essentially not putting all your eggs into one basket.
We’re here when you need us
The great thing about getting advice and investing through us is that we’re here for you if and when you need us.
Whether it’s getting support from our dedicated webchat team or booking a free telephone appointment with one of our expert financial advisers, you can come to us with any questions you have.
We can give you the peace of mind you deserve by taking the stress out of having to manage your own investments, so you can get on with your day-to-day life.