A new online investment service aimed at millennials has said it will not offer advice because it doesn’t believe young people need it.
Wealthify launches today (7 April) and is aimed at people aged between 25 and 40-years-old, allowing them to invest a minimum of £250.
Michelle Pearce, co-founder and chief investment officer at Wealthify, said she was a millennial who worked in the investment sector and set up the business after her friends asked her what they should do with their money.
She said: “The sad truth was that because they were talking about £5,000 or at most £10,000 their options were limited.
“They were given low rates by banks or complex products with lock-ins and an IFA wouldn’t want to look at you unless you have got £50,000.”
Those who invest between £250 and £14,999 with Wealthify will be charged 0.7 per cent while those who invest between £15,000 and £99,000 will be charged 0.6 per cent and those who invest £100,000 or more will be charged 0.5 per cent.
It offers five different “investment styles” including “adventurous” and “tentative” with investors assessing their own attititude to risk through a series of questions.
Ms Pearce said: “The main reason we are non-advised is that for our target audience there is not really a lot of advising that needs to be done.
“When you are talking about wealthier individuals, they may may have Sipps or different tax wrappers but what our target audience is really looking for is a very simply Isa and the majority don’t need advice.”
Money saved through Wealthify will be 80 per cent invested in passive vehicles such as ETFs and mutual funds.
The service will also include a social aspect called Wealthify Circles which gives customers discounted fees if they introduce their family and friends to it.