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Quick-start funds

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Quick-start funds

Low-cost investments to help get you started – all chosen by our experts.

Our six quick-start funds help make investing easy. They are like ready-made portfolios that give you one-stop access to the world’s markets. If you are looking for a straightforward, low-cost way to invest and grow your money over three years or more, they could be right for you.

We offer a choice of three passively managed funds from Vanguard and three actively managed funds from BMO Global Asset Management, picked out by the ii  investment selection committee. These funds are some of the most competitively priced on the market.

You will need to decide between passive and active investing and then select the fund that suits your attitude to risk and your goals.

In September 2020 we introduced three BMO funds to the quick-start range. Our decision to increase the number of funds in the range was made to give beginner investors more choice in terms of funds and approach, given the three BMO funds are actively managed, which means they have the potential to deliver better performance (though there are no guarantees). 

Following a comprehensive review of multi-asset active funds the ii investment selection committee was drawn towards funds that invest with ESG (environmental, social and governance) principles. 

Read about ESG and sustainable investing »

The three BMO funds stood out from the competition due to their sustainable investment philosophy, how the funds invest and manage risk, as well as BMO’s focus on low costs, with an ongoing charge of 0.35%. Other funds we considered are not as competitive on fees. 

We also conducted a comprehensive review of the passive options. The ii investment selection committee concluded the three Vanguard funds remain the best in class. 

These quick-start funds are not personal recommendations, meaning we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. You should ensure any investment decisions you make are suitable for your personal circumstances. Note that interactive investor does not endorse any particular product. If you are unsure about the suitability of a particular investment or think you need a personal recommendation, you should speak to a suitably qualified financial adviser. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest.

 

Vanguard LifeStrategy®

At a glance

  • Each fund created with between 6,000 and 20,000 underlying holdings.
  • Globally diversified in equities (shares) and bonds, helping to reduce your risk.
  • Regular rebalancing – Vanguard manages the portfolio for you (fixed strategic asset allocation).
  • Invested in the full range of sectors including technology, media and energy.

20% Equity Fund

Vanguard LifeStrategy® 20% Equity Fund

If you are looking for less risk, rather than higher returns, this fund is a great place to start.
 

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60% Equity Fund

Vanguard LifeStrategy® 60% Equity Fund

If you are comfortable with a little more risk, this fund is a good middle ground investment. 

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80% Equity Fund

Vanguard LifeStrategy® 80% Equity Fund

For potentially higher returns, in exchange for more risk, this fund could suit your portfolio.
 

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BMO funds

At a glance

  • With an ongoing charge of just 0.35%, these funds are the ultimate, globally diversified one stop shop for active management.
  • Globally diversified in equities (shares) and bonds, helping to reduce your risk.
  • Combines BMO’s expertise in multi-asset and responsible investment, focusing on companies making a positive difference to the world we live in.  
  • Each fund targets inflation-beating returns over five years. Bear in mind the inflation targets for each fund is just a target and is not guaranteed.

BMO Cautious

BMO Sustainable Universal MAP Cautious

An actively managed option for investors taking a cautious approach to risk to start their investment journey.
 

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BMO Balanced

BMO Sustainable Universal MAP Balanced

An actively managed option for investors taking a balanced approach to risk to start their investment journey.
 

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BMO Growth

BMO Sustainable Universal MAP Growth

An actively managed option for investors taking a more adventurous approach to risk to start their investment journey.

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Why did we choose these funds?

Our updated Quick Start range offers simple to understand, transparent and well diversified portfolios that offer good value for money and are very competitively priced. It provides exposure to passive investment strategies and active strategies. The active funds will also appeal to investors who are interested in sustainable investing.  

Moira O’Neill, Head of Personal Finance at interactive investor

What will it cost to invest in the quick-start funds?

To buy and sell any funds with ii, our normal charges apply.

Vanguard LifeStrategy® funds have an ongoing charges figure (what it costs to run the fund) of just 0.22%. That means for every £1,000 you invest, £2.20 goes on management costs. Funds often have other fees, such as transaction charges incurred by the fund manager, which increases the overall costs. This means the total product cost of investing in each Vanguard LifeStrategy® fund is:

  • 0.28% for the LifeStrategy® 20% equity fund
  • 0.27% for the LifeStrategy® 60% equity fund
  • 0.27% for the LifeStrategy® 80% equity fund

The three BMO funds are actively managed at a very competitive ongoing charge of 0.35%. That means for every £1,000 you invest, £3.50 goes on management costs. 

  • 0.35% for the BMO Sustainable Universal MAP Cautious fund
  • 0.35% for the BMO Sustainable Universal MAP Balanced fund 
  • 0.35% for the BMO Sustainable Universal MAP Growth fund

These costs are broken down in more detail in each fund’s cost disclosure document, which you can review before investing. Access each one by selecting factsheet above then selecting the relevant file under documents on the fund page.

Please note that ii does not endorse any particular product and cannot make a personal recommendation for you.

Tools and insight

We answer your questions about the quick-start funds and how to start investing. Click here to find out more.

 

How Vanguard runs the funds

A good starting point for all investors

Get started today

Quick-start funds can be held in any of the accounts we offer.

£9.99 a month covers you for multiple accounts (open a SIPP by 31 December and pay no SIPP fee until July 2021. Then just £10 a month extra).

Trading Account

Our flexible trading account, where you can invest in all markets in the way you want.
 

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ISA

Make the most of your tax-free savings allowance with our award-winning Stocks & Shares ISA.

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SIPP

Invest for a better future with our great value, award-winning SIPP.
 

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Looking for more choice? Discover a range of investments rigorously selected by our experts, with quality options for any portfolio.

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