Here at InvestEngine, we’re always looking for ways to make investing easier. It’s why we’ve built our latest feature called AutoInvest for DIY investors.
As its name suggests, AutoInvest automatically invests your cash for you.
Whether it’s your monthly direct debit or dividends from your ETFs, AutoInvest invests this cash according to your chosen portfolio weights and without you having to place any manual orders.
It’s convenient and, by keeping you fully invested, could also help your portfolio’s returns.
You can use AutoInvest in any DIY portfolio with InvestEngine — it’s free and all you need to do is turn it on in your portfolio. (Note, with Managed portfolios, we automatically invest your cash already
How does it work?
Your portfolio may have just received your monthly direct debit payment or a transfer from your bank, or some of your ETFs may have paid dividends, leaving you with cash in your portfolio.
AutoInvest will automatically invest this cash in the next trading window, using the ETF weights you’ve set for your portfolio.
No need to place manual investment orders or have cash building up in your portfolio, waiting for you to get around to investing it — it’s all done for you.
AutoInvest will invest as little as £1 of cash, though its Cash Buffer option also lets you retain a higher cash balance in your portfolio while auto-investing the rest (for example, if you set a cash buffer of £25 and you have available cash of £100, AutoInvest will only invest £75 of it).
What’s good about it?
As well as being a convenient way to invest, AutoInvest could help your portfolio’s performance!
It avoids having excess cash in your portfolio, earning nothing and acting as a drag on your overall returns.
And by reinvesting dividends quickly, you can benefit from compounding.
It’s flexible too, because we recognise you may not always want your cash auto-invested.
You can turn AutoInvest on and off easily, and use the Cash Buffer option to vary the amount of cash retained in your portfolio.
We’ve also added a circuit breaker so that if you sell anything in your portfolio, AutoInvest is automatically turned off. This is to avoid your sale proceeds being accidentally reinvested, when you may have been planning to withdraw them. (Of course, you can always turn AutoInvest back on if you do want that cash reinvested or once you’ve made your withdrawal.)
Do I have to invest with AutoInvest?
No, it’s your choice whether you want to turn AutoInvest on in your DIY portfolio.
While we believe plenty of investors will welcome its convenience, we appreciate that others may prefer to place their own portfolio orders and individual ETF trades.
If you have multiple DIY portfolios on InvestEngine, you could also mix-and-match, using AutoInvest in some portfolios but not others.
How do I add it to my portfolio?
It’s simple. Just log in to InvestEngine, go to your portfolio dashboard, and click on the AutoInvest OFF label. Or go to the Options menu and select AutoInvest available cash.
Then move the AutoInvest toggle to ON. This will also give you the option to Keep a cash buffer, which lets you set an amount of cash you want to retain in your portfolio while auto-investing the rest.
Don’t have an InvestEngine DIY portfolio? Sign up today to invest with AutoInvest.
Capital at risk. The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest.
This communication is provided for general information only and should not be construed as advice. If in doubt you may wish to consult a professional adviser for guidance.