Vanguard has launched a targeted support service for first-time investors through its online UK Personal Investor platform.
The new service is designed to provide straightforward guidance and investment recommendations at no additional cost.
The firm said clients are guided through a small number of questions to determine their individual circumstances, including their investment goal, time horizon, and attitude to risk.
Based on these answers, the service identifies the most suitable account type, such as an ISA for general investing or a SIPP for those focused on retirement.
Clients are then provided with a clear investment suggestion aligned to their goal. For ISA investors, this includes a LifeStrategy fund, while those saving for retirement will be guided towards a Target Retirement fund.
Liz Waldron, head of client experience and product at Vanguard, said: “We know that many savers lack confidence when it comes to investing. For many, investing feels complex, time-consuming or simply too risky, and we see those concerns play out in practice, with one in five people dropping out of our ISA journey when asked to choose an investment.”
Waldron said the firm’s targeted support service is designed to remove some of those barriers.
“To help people better understand concepts such as long-term investing and the power of compounding, we’ve also deliberately incorporated “learning moments” throughout the journey.
“We believe confidence comes from understanding, and we want people to leave the experience feeling not only supported in their decision, but more informed and empowered about investing for their future.”
Across the UK, Vanguard estimates that £218 billion is held in cash beyond what is typically needed for day-to-day spending and emergency savings. Vanguard’s British Money Mindset report found that a lack of confidence is preventing many non-investors from getting started, despite 68% planning to invest in the near future – a figure that rises to 91% among Gen Z savers.
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