Wealthyhood describe themselves as the first DIY wealth-building app for long-term investors. This initiative is still in its infancy however, I have tested the products and services available now.
Wealthyhood are definitely marketing themselves to new investors with little to no market experience. It would not suit experienced investors or day traders.
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Wealthyhood are one of the most recent launches in the investment platform space, with an aim to provide complete beginners with the means to create their own personalised investment portfolio completely commission-free.
Wealthyhood claim to achieve this by providing their users with all the tools and information to learn as they go. If you are looking for an entirely hands-off approach, then Wealthyhood probably won’t be right for you. However, if you are looking to invest, and you would like to learn on the job, then Wealthyhood do a pretty good job of breaking down all the jargon into bite-sized, easy-to-understand information that’s relatable.
Who is Wealthyhood?
Wealthyhood is a brand new DIY investment app aimed at beginners with the intention of providing an easy-to-use platform where you can learn the basics of investments as you go.
They provide a range of ETFs in different sectors, industries and geographies to provide scope for a fully personalised portfolio for long-term investing.
Who owns Wealthyhood?
Wealthyhood was co-founded by Alexandros Christodulakis and Konstantinos Faliagkas who retain their roles as CEO and CTO respectively. Christodoulakis comes with an impressive background including time as FID Associate Strategist at Morgan Stanley and Konstantinos spent time as a Senior Software Engineer at Playstation.
Wealthyhood product range overview
Wealthyhood provides access to a range of ETFs via a general investment account. There are plans to add an ISA, at which time there will be three plans available.
It is important to note that there is currently no app available, your account can only be accessed via a web browser.
As mentioned, Wealthyhood is still very much in its infancy and is therefore still under development. Whilst it is totally possible to set up an account and start investing now, there will be a wait before two of the proposed plans become available.
In terms of asset classes, you have a decent choice of ETFs which can easily be explored by sector including energy, healthcare, technology, financials, industrials, government bonds, corporate bonds, commodities and real estate.
This is the general investment account which comes at a cost of £1 per month. Within this plan, you can take advantage of unlimited commission-free investing in the ETFs of your choice. There is also the option for portfolio automation including monthly top-ups, rebalancing and re-investing, and a fairly endless choice of personalised portfolio templates.
This is yet to come to market but when it does it will set you back £3 per month. It is worth bearing in mind that at Wealthyhood you can start investing with just £10. However, at a cost of £3 per month, your £10 will soon vanish.
The Wealthyhood ISA will carry all the tax benefits of investing within a tax wrapper.
This plan comes at a cost of £7 per month and in addition to the ISA allows for commission free investing in individual stocks, as well as access to premium tools. As this plan has yet to launch, it is unclear what exactly those tools will be and whether this plan will be worth the monthly cost. Time will tell.
Wealthyhood portfolios review
Wealthyhood has fully customisable portfolios. This is what sets it apart from all the robo-advisors and makes the price point competitive for the beginner plan.
Customising your portfolio will be the first thing you are required to do when you open your Wealthyhood account. This is completed by answering a series of questions that come in 7 steps.
The first stage is to select your asset class. You have the choice of the following:
- Real Estate
A quick hover over any of these options will give you an insight into what each of these is. However, for a complete beginner, the information provided doesn’t really provide much guidance on whether this is something you should aim to have in your portfolio, or whether you should have some or all of these options.
The next step would be to select the geography of your investments from:
Again, a complete novice would struggle to know which of these two options is best, or even what to base their decision on.
Next, you will be required to choose your sector or industry out of:
You can choose as many of these sectors as you like.
The 5th step involves selecting additional ETFs from any asset class or industry. These include EU stocks, Global stocks, and Japanese stocks to name a few.
The 6th step is to customise your portfolio weighting. There is the option to use Wealthyhood’s model to statistically optimise the weighting of your portfolio or to manually weight your portfolio yourself.
Whilst Wealthyhood have taken steps to explain the main concepts, it still feels like many of these decisions would be a guess for someone with no market experience or knowledge of what to base your decisions on. There is the option to change your asset allocation later on however, there is still little to go on in terms of balancing stocks and bonds.
Wealthyhood Virtual Portfolio
Wealthyhood also offer the option to build your own personalised portfolio with zero risk. This provides scope to track your investments virtually, and fine-tune your options before investing with real funds.
Wealthyhood customer service review
Wealthyhood currently only offer customer service via email. You can expect a response on the same day and queries were dealt with well.
I would like to hope that Wealthyhood would expand their customer service offering to include live chat and telephone support in the future although there is no indication that this is part of their plan.
However, when I reached out to customer support, I received polite, helpful responses in a timely manner.
Opening an account at Wealthyhood
Opening an account with Wealthyhood was quick and easy as is expected from investment platforms.
Once you have completed the portfolio allocation as listed above, you can expect to complete your account verification which in my case took seconds to complete. Make sure you have your National Insurance Number to hand and your personal details.
Linking your bank account and funding your account is a quick and easy process, however, I opened my account on a Friday and it wasn’t until Monday afternoon that my investment was executed. I’m not sure as to the reason for this delay as on other investment platforms it has been fairly instant.
Wealthyhood are authorised and regulated by the Financial Conduct Authority. In order to log in to your account, you will be asked to provide a one-time, unique code sent to the email address associated with your account.
In addition to the regulation by the FCA, Wealthyhood customers are also covered by the Financial Services Compensation Scheme up to the value of £85,000.
In order to log in to your account, you will be asked to provide a one-time, unique code, sent to your email address. At this stage, you can only access your account via a web browser, which means Wealthyhood are lacking all the protections associated with an app like two-factor login and biometric ID.
I also discovered that when I closed down my browser and then went to log in again, I wasn’t required to complete any security at all but was taken straight to my dashboard.
There are no costs associated with the use of Wealthyhood other than the fee for the plan you use. This means that for the most basic plan, you will spend only £1 per month, regardless of how many trades you make.
Who is Wealthyhood suitable for?
Wealthyhood is suitable for beginner investors. They have positioned themselves as a platform where inexperienced investors, interested in putting together their own portfolio, can learn as they go in an uncomplicated environment with simple, educational resources and real-time guidance.
It is also prudent to point out that Wealthyhood market themselves as a long term investment proposition for investors looking to build long term wealth with no more day trading.
Wealthyhood is not suitable for more experienced investors. Compare investment platforms to find alternatives.
Useful Information about Wealthyhood
This section contains useful information to make your experience at Wealthyhood as seamless as possible.
How do I contact Wealthyhood?
Wealthyhood can be contacted via email at [email protected].
How do I get a free ETF worth up to £200?
This offer is part of a referral scheme. You can redeem this offer either by signing up using someone else’s referral link, or you can open an account and refer a friend. When your friend makes their first investment you will both receive the offer.