If you are looking for a good online investment platform to invest your money with, you may be weighing up Wealthify and Moneyfarm. If you are new to investing or have limited time to manage your wealth, a robo-adviser can be a good choice. In this article, we compare the key features of these two options to help you find the best one for you.
We also provide details of the offers our readers can enjoy with Moneyfarm*, with the potential for them to manage your money for free for the first 12 months (terms and conditions apply).
Wealthify vs Moneyfarm - which is better?
Key features of Wealthify vs Moneyfarm
|Wealthify||Moneyfarm Fully Managed|
|Minimum investment||£1 (£50 for SIPP)||£500|
|Management Fees||0.6% flat fee
Additional underlying fund charges
|Up to £10,000 - 0.75%
£10,001 to £20,000 - 0.70%
£20,001 to £50,000 - 0.65%
£50,001 to £100,000 - 0.60%
£100,001 to £250,000 - 0.45%
£250,001 to £500,000 - 0.40%
Over £500,000 - 0.35%
The fee you pay is based on the total value of your portfolio and so if you invest £75,000 you will pay a total fee of 0.60%
Additional underlying fund charges
|Products||ISA, General Investment Account, Junior ISA and SIPP||ISA, General Investment Account, Junior ISA and SIPP|
|Number of portfolios||5||7|
|Other options||N/A||Thematic investing, Liquidity Plus (money market funds), Share investing|
|Customer reviews (Trustpilot)||4.0||3.9|
|Money to the Masses offer||N/A||No management fees for 12 months (terms and conditions apply)*|
Wealthify vs Moneyfarm - minimum investment
If you are keen to try a robo-adviser but don't want to tie up too much money initially, Wealthify is a good option as it only requires a minimum investment of £1, or £50 for its SIPP. Moneyfarm, meanwhile, needs a minimum of £500 to open an account.
Wealthify vs Moneyfarm - fees
If you have a smaller amount invested, Wealthify, with its flat management fee of 0.6%, is likely to work out cheaper than Moneyfarm. If you have up to £10,000 invested with Moneyfarm you will pay 0.75%, with the platform only working out to be cheaper than its rival Wealthify for those with pots over £100,000. In both cases, you will have to pay the cost of the underlying investments in addition to the stated management fees.
Wealthify vs Moneyfarm - products
With Moneyfarm having recently launched a Junior ISA*, both platforms now have the same range of wrappers available. If you are specifically interested in a JISA, it may be worth checking out our round-up of the best JISAs in the UK, which includes Moneyfarm's new product.
Wealthify vs Moneyfarm - portfolios
While Wealthify has 5 risk-rated portfolios, ranging from Cautious through to Adventurous, Moneyfarm has a broader spectrum, with fully managed and 7 fixed allocation portfolios. With the asset allocation varying according to the investors' risk appetite, the Moneyfarm range has slightly more nuance and may be better suited to those who have a stronger opinion on how much exposure they want to riskier assets, specifically equities. Moneyfarm also has a broader range of alternative investing options with access to Thematic investing, share investing and a Liquidity Plus portfolio.
Wealthify vs Moneyfarm - ethical portfolios
As demand for ethical investments grows, both Wealthify and Moneyfarm have developed ethical portfolios that sit alongside their main ranges. As with the original portfolios they follow the same risk-rating system, but are exclusively populated with passive funds with a SRI or ESG focus. As such, Wealthify has 5 ethical portfolios to choose from, while Moneyfarm has 7 fully managed and 7 fixed allocation portfolios.
Wealthify vs Moneyfarm - performance
As each platform has a different number of portfolios available, it is difficult to draw direct comparisons across the ranges. However, for the purpose of achieving an overview of how they performed in 2022, the table below shows the returns of Wealthify's portfolios, alongside the nearest comparable portfolios from Moneyfarm.
Comparison of Wealthify and Moneyfarm returns 2022
|Wealthify returns 2022||Moneyfarm returns 2022|
|Wealthify Cautious vs Moneyfarm Portfolio 2||-11.20%||-9.00%|
|Wealthify Tentative vs Moneyfarm Portfolio 3||-11.10%||-9.30%|
|Wealthify Confident vs Moneyfarm Portfolio 4||-10.30%||-9.00%|
|Wealthify Ambitious vs Moneyfarm Portfolio 5||-9.40%||-11.50%|
|Wealthify Adventurous vs Moneyfarm Portfolio 6||-9.10%||-11.70%|
In terms of recent performance, there is little to choose between the two. Moneyfarm slightly outperformed Wealthify in 2022 across the lower-risk portfolios, however, Wealthify's high-risk portfolios performed slightly better than Moneyfarm. We have provided a more detailed analysis of performance, going back three years, in our article "Which is the best performing stocks and shares ISA?". However, past performance isn't always a guide to future performance.
Summary: Wealthify vs Moneyfarm
If you are looking for the widest range of investment portfolios, as well as relatively strong performance over the past 3 years, Moneyfarm edges Wealthify in both categories. It also benefits from assigning every customer with an investment consultant, who can offer guidance and perhaps undertake an initial investment review.
However, if you are looking for the cheapest robo-adviser, Wealthify is more competitive than Moneyfarm for investments up to £10,000, matching its rival on investments up to £50,000.
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