Investing might seem complicated, but it doesn’t have to be. At Vanguard, we believe that everyone has the potential to become a successful investor, no matter their experience or confidence levels. Whether you’re just starting out or have years of investing experience, there’s an option for you.
When you open an individual savings account (ISA) or any other type of account with us, the first thing to consider is why you are investing. Are you saving for retirement, a new home or something different? Keeping your goals in mind will help you stay focused and make better decisions.
It’s also important to think about how you can spread your risks by holding a wide range of investments. This is easier than you may think, as we offer solutions whether you want to do it yourself or want us to do it all for you.
How to choose funds
Why choose funds over individual shares or bonds1? Because funds help you spread your risks. Instead of investing in just one or two companies, your money is invested in hundreds, if not thousands, of different companies. This way you’re more likely to own shares in the winning companies that drive stock market returns.
When you’re deciding which funds to invest in, ask yourself whether the funds will help you achieve your goals and are in line with your attitude to risk.
It’s important to make sure you have a balanced portfolio – one that spreads your money across different types of investments, industries and regions of the world. When one type of investment, industry or region underperforms, the others will hopefully outperform. This helps to soften the impact of losses and lead to a smoother overall performance.
For example, shares have historically offered higher returns than bonds over the long term, albeit with greater volatility (or swings in prices) along the way. Bonds have historically offered lower but more stable potential returns than shares. Research shows that an investor’s mix of shares and bonds – known as their ‘asset allocation’ – is a key driver of long-term investment success2.
Do it all for me
We understand that not everyone wants to handle their investments alone, and that’s where our managed ISA comes in. We’ll create an investment plan that aligns with your attitude to risk and aims to grow your wealth. Our managed ISA is designed to take the guesswork out of investing, allowing you to focus on what matters most – reaching your financial goals.
We start by asking you a few simple questions to understand how you feel about risk. Based on your answers, we match you with one of five portfolios. Each portfolio is designed to balance the different risk and return characteristics of shares and bonds, ensuring that your investments are aligned with your goals.
We’ll manage your portfolio for you, making changes only when necessary to maintain the right level of risk. This means you won’t have to worry about making impulsive decisions, such as panic-selling when markets are choppy.
Our managed ISA is low-cost, at just 0.61% a year all-in, reducing to 0.51% from 31 January. This includes your account fee, management fee and fund charges.
Do it yourself
Alternatively, you can build your own portfolio using our individual funds, with over 85 to choose from.
Or you can pick one of our five LifeStrategy funds, which are all-in-one solutions that combine different types of investments in one ready-made portfolio. Each fund holds 6,000 to 20,000 investments in shares and bonds around the world, so you may only need one fund to build a balanced portfolio. This simplifies the process and makes it easier for you to focus on your goals, without worrying about the complexities of managing multiple investments.
1 Bonds are a type of loan issued by governments or companies, which typically pay a fixed amount of interest and return the capital at the end of the term.
2 Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower, 1995. "Determinants of portfolio performance." Financial Analysts Journal 51(1):133–8. (Feature Articles, 1985–1994.)
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
The eligibility to invest in either ISA or Junior ISA depends on individual circumstances and all tax rules may change in future.
Important information
Vanguard only gives information on products and services and does not give investment advice based on individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of the product[s] described, please contact your financial adviser.
For further information on the fund's investment policies and risks, please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions. The KIID for this fund is available, alongside the prospectus via Vanguard’s website.
This is designed for use by, and is directed only at persons resident in the UK.
The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares and /or units of, and the receipt of distribution from any investment.
Vanguard will manage your investments in the Managed ISA on your behalf. You will not be able to place trades on your own account.
The Authorised Corporate Director for Vanguard LifeStrategy Funds ICVC is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard LifeStrategy Funds ICVC.
Issued by Vanguard Asset Management Limited, which is authorised and regulated in the UK by the Financial Conduct Authority.
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