AstraZeneca, the FTSE 100’s largest company, is powering towards a potential £200 billion valuation this year.¹ The pharmaceutical giant is regaining momentum as tariff concerns fade, with robust earnings and promising clinical trial results reigniting investor confidence.

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What’s driving AstraZeneca’s recent growth?

• Pipeline momentum: Positive trials in new treatment for high blood pressure Baxdrostat, as well as multiple new regulatory approvals across oncology, cardiovascular and rare disease therapies. 
• Strong financial results: Total revenue was up 9% in H1 2025 to £21.3 billion, operating profit rose 23% to £5.46 billion, and pre-tax profit rose 26% to £4.96 billion. 
• Regulatory clarity in China: Investigations into the company’s tax and insurance practices are nearing resolution, with fines expected to be minimal.
• Tariff risk under control: Reassurance on the impact of US trade policy, with tariffs seen as manageable. 

If AstraZeneca continues to post strong earnings results and investors continue their vote of confidence, hitting the £200 billion valuation before the end of the year could be within reach.¹ 

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Why does this matter?

As the FTSE 100’s largest company, solid growth from mega-cap stocks like AstraZeneca is enough to have a positive impact on the whole index. 

Although one stock's growth doesn’t indicate a trend for other stocks in the FTSE 100, it does show us how strong innovation and earnings (even in the face of adversity) can continuously drive value and resilience. 

For long-term investors, AstraZeneca’s rally reinforces the case for focusing on high-quality companies with a history of long-term growth often found in market-cap weighted indexes like the FTSE 100 or S&P 500. 

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Where does Chip come in?

With Chip, you can invest in index funds like the FTSE 100, which track the price of huge companies like AstraZeneca. Companies move in and out of the underlying index based on their market cap (value of total shares), so you can be sure you’re always investing in the 100 most valuable stocks. 

Open a Stocks & Shares ISA or General Investment Account, choose your funds, and you’re away!

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Sources

¹TheMotleyFool

What is a recession?

A recession is a significant decline in economic activity across the economy, lasting more than a few months. In the UK, it is commonly defined as two consecutive quarters of negative GDP (Gross Domestic Product) growth.

Recessions affect many areas of the economy such as employment, business profits and consumer confidence. While often seen as negative, they are a natural part of the business cycle and can set the stage for future growth. 

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What causes a recession to happen?

Several factors can contribute to a recession. These factors can include:

• High inflation: When prices rise too quickly, consumer spending can fall, slowing the economy.
• High interest rates: To combat inflation, central banks (like the Bank of England), may raise interest rates, which increases borrowing costs for businesses and households.
• Falling consumer confidence: When people become uncertain about the future, they tend to spend and invest less.
• External shocks: Events like global pandemics, geopolitical conflicts, or oil price spikes can disrupt economic activity.
• Financial market imbalances: Asset bubbles (rapid price rise above value) or debt crises can lead to sudden market corrections (a drop of more than 10% in an index's market value) that can ripple through the broader economy.

Often, it’s not one cause but a combination of several factors that can lead to a downturn at various stages of a recession. 

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How long do recessions last?

The length of an economic recession varies. Historically, UK recessions have lasted anywhere from a few quarters to several years. For example, the 2008 global financial crisis caused a recession that lasted around five quarters in the UK. 

However, economic recovery often begins before people realise, as confidence and spending start to pick up. 

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How does a recession affect investing?

Given how recessions have an immediate impact on the economy, a recession can affect various investment asset classes, including: 

• Stock market volatility: Share prices often fall as company earnings decline and investor sentiment weakens. 
• Bond markets: Government bonds may become more attractive as investors seek safer assets.
• Dividend cuts: Companies may reduce or suspend dividends to conserve cash.
• Property market: Housing prices may fall due to reduced demand and tighter credit conditions.
• Currency fluctuations: For example, the pound may weaken, especially if the UK economy is underperforming compared to others.

For investors, a recession can bring short-term losses, but it also creates long-term opportunities, particularly for those who remain calm and strategic. Understand investment risks and strategies. 

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How can investors prepare for a recession?

Preparation is key. There are various investment strategies investors can take into account. This includes: 

• Review your risk tolerance: Make sure you review the amount of loss you’re prepared to handle while making an investment decision.
• Diversify: Spread investments across different asset classes and sectors to reduce exposure to any single area.
• Maintain an emergency fund: Cash reserves help cover living expenses without needing to sell investments during downturns.
• Focus on quality: Strong companies with strong fundamentals and healthy balance sheets are more likely to survive and recover. 

Avoid trying to predict the exact timing of a recession. Instead, focus on building a resilient portfolio that can weather a range of outcomes.

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How to invest during a recession?

Investing during a recession can feel counterintuitive, but it can also be a time of opportunity. 

• Stay invested: Attempting to time the market often leads to missed gains when markets rebound.
• Look for undervalued assets: Prices may fall below their true value, offering long-term potential.
• Use pound-cost averaging: Regularly investing a fixed amount can help smooth out price volatility over time.

Remember, recessions don’t last forever. Markets typically begin recovering before the wider economy does.

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What are the risks of investing during a recession?

A recession brings economic uncertainty. For investors, it’s important to understand potential downsides:

• Increased volatility: Markets can swing widely in either direction. Learn about stock market basics.
• Company defaults: Some businesses may not survive, particularly those with high debt levels.
• Lower income: Investors relying on dividends or interest may see reduced payouts.

Risk cannot be avoided entirely, but it can be managed through careful planning, diversification and understanding the risks involved. 

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Recession and investing summary

Recessions are challenging, but not unusual. For new investors, understanding how they work, and how markets tend to react, is a key part of building confidence and resilience. 

By focusing on long-term goals and maintaining a diversified, risk-aware strategy, it’s possible to navigate economic downturns more effectively.

Up next, learn what liquidity is and how it can affect investors. 

What is the 50/30/20 rule?

The 50/30/20 is a simple budgeting technique that helps you start managing your money, keep doing what you enjoy and start building your future wealth.

Popularised by US Senator Elizabeth Warren and economist Amelia Warren Tyagi in their 2005 book, All Your Worth: The Ultimate Lifetime Money Plan.

You split your income between paying your living expenses (50%), doing the things you like doing (30%), and working towards your financial goals (20%).

The rule gives you a clear structure to your budget for the month, with limits to help avoid overspending while building up your savings over time. Starting small with something achievable means you're much less likely to give up.

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A quick note before you start…

Think about what’s right for you

Before we begin it’s safe to say we're making the following assumptions about the financial position of the reader.

We are looking at you, if you’re comfortable enough to have disposable income that sits idle in your current account or in a basic low interest savings account with your bank every month. Understand the different types of savings accounts.

This is not financial advice - this is about simple tips to get going, while not impacting your day to day life or living a life of extreme frugality. So if this sounds like it’s for you, read on!

The following should not be taken as advice or guidance around financial hardship. If you're in this situation, there is support available from GOV.UK or Citizens Advice that can help.

Try out our savings goal calculator to see how long it'll take to achieve your savings goal!

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What could 50/30/20 look like?

Bring order to the chaos

1. Essentials - This is stuff you need - Your costs of living. This is your rent or mortgage, the bills you pay from utilities like energy to your mobile phone, internet. This includes food essentials, transport to work and insurance policies. You can also add debt here depending on how you see it or you may choose to see it as a financial goal - It’s up to you. In general it's considered wise to pay off short term debt first if it costs you interest.
2. ‍Desires - This is stuff you want and like doing. Activities like going to restaurants, cinema, shopping, holidays and trips, your gym membership and the subscription services you use like Netflix. We also mean non-essential food like takeout coffee.
3. ‍Future  - This is savings and/or investments that are put towards your goals. How you do it is up to you to save up for a house deposit or pay off long term debt repayment or even setting up an emergency fund. This is where Chip comes in, but more on that later.

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How to apply the rule

Working out your monthly spend 

First you need to know how much you’re spending on each area and your monthly income*. This will require a little work but all you need is a bank statement and a calculator.

Apps like Revolut and Monzo make this very simple as your spending is automatically put into categories like restaurants, shopping, groceries etc so you can work out the amounts of Essentials, Desires and Goals with ease.

Once you have all your spending laid out apply the following simple maths 

Divide the amount you’re spending on Essentials, desires and goals per month by your monthly income.

For example: If your Essentials are £1,100 and your wages are £2,200 do the following

£1,110 ÷ £2,200 = 0.5 then multiply that number by 100. For example: 0.5 × 100 = 50%.

*If your income isn’t regular take your average income from the last three months

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What else is great about 50/30/20?

It’s completely flexible

The 50/30/20 rule works because it’s simple. It’s also flexible and you can change the numbers to suit your situation. For example high rent in a city might mean you have to split it 55/25/20.

These serve as limits and targets and can guide you to make changes.

If your essentials cost more than 50% could you make a change like switching broadband provider? If your desires cost more than 30%, could you cut down the amount times you buy lunch out? 

Putting 20% towards your financial goals is a good target but it can’t hurt to aim for more, if your living costs allow a 40/30/30 split, increase the amount you put towards your goals.

While 50/30/20 isn't a silver bullet, it does provide an easy-to-follow rule to get you started. The rest is up to you. Learn more about money saving tips.

An Instant Access Account is a type of savings account that allows you to deposit and withdraw your money whenever you need it, without incurring any penalty charges. 

It is an easy-to-use and flexible savings option that generally offers a higher interest rate than a standard current account.

In the UK, Instant Access Accounts are offered by various banks, building societies and other financial providers. They can be opened online, over the phone or in person at a branch (depending on the provider).

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What are the benefits of an instant access Account?

1) Flexibility

One of the main benefits of an Instant Access Account is its flexibility. 

You can deposit or withdraw money from the account whenever you need it, usually without any restrictions or penalties. This makes it a great option for those who need easy access to their savings.

2) Competitive interest rates

Instant Access Accounts usually offer a higher interest rate than standard current accounts, which means you can earn more money on your savings.

However, the interest rate is generally lower than fixed-term savings accounts, which require you to lock your money away for a set period of time. Different types of savings accounts.

3) No penalties

Unlike some other savings accounts, there are usually no penalties for withdrawing money from an Instant Access Account. You can usually make as many withdrawals as you like, without incurring any charges. 

This does, however, depend on the savings account provider and their terms and conditions of the account. 

4) Protection

Your savings in an Instant Access Account are protected by the Financial Services Compensation Scheme (FSCS), which means that if the bank or building society held in the UK goes bust, you will be protected up to £120,000 per person, per institution. 

Please note that FSCS is subject to eligibility and limits apply. For more information, please visit: https://www.fscs.org.uk/check/ 

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How to choose the right Instant Access Account?

When choosing an Instant Access Account, it’s important to compare the interest rates offered by different banks and building societies.

You should also consider any additional features, such as charges that may or may not apply.

It’s also important to check whether the bank or building society is covered by the Financial Services Compensation Scheme, which provides protection for your savings in the event of the institution going bust.

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Instant Access Account Summary

In conclusion, an Instant Access Account is a flexible and convenient savings option that offers competitive interest rates and easy access to your funds.

It’s a great choice for those who need to save money but also need access to their funds whenever they need it. 

By choosing the right Instant Access Account, you can make your money work harder for you, while also enjoying the peace of mind that comes with knowing your savings are protected under FSCS (subject to eligibility)

Remember to always do your research when comparing instant access accounts and that you’re fully aware of any terms of conditions when opening an account with a provider.

What is Aggressive Investing?

Aggressive investing is a strategy focused on maximising returns by taking on higher levels of risk. It typically involves investing in growth-oriented assets such as:

• Equities, especially small-cap or emerging market stocks
• Sector-specific funds (e.g., technology, biotech)
• High-yield bonds or other speculative fixed income
• Venture capital or early-stage companies (for more advanced investors)

The goal is capital appreciation, even if it means weathering greater volatility in the short term. This strategy is often favoured by investors with a long time horizon and a higher tolerance for market fluctuations.

Characteristics of Aggressive Investing:

• High potential for long-term growth
• Greater short-term volatility
• Less focus on income or capital preservation

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Pros & Cons of Aggressive Investing

Pros of aggressive investing include:

• Higher potential returns over the long term
• Capitalises on economic growth and innovation
• Suited to long-term investors who can ride out volatility

Cons of aggressive investing include:

• Greater risk of short-term losses
• Emotional discipline required during downturns
• May underperform in stagnant or declining markets

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What is Defensive Investing?

Defensive investing seeks to protect capital and reduce risk, especially during market downturns. Defensive strategies often prioritise stability and income over growth. Common defensive assets include:

• Blue-chip or dividend-paying shares
• Government and investment-grade bonds
• Cash or near-cash equivalents

This approach is typically chosen by those nearing retirement, or those who are more risk-averse, and prefer predictable returns.

Characteristics of Defensive Investing:

• Lower potential returns, but reduced risk
• Focus on capital preservation and income
• More resilient during economic slowdowns

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Pros & Cons of Defensive Investing

Pros of defensive investing include:

• Lower volatility and steadier returns
• Capital is more protected in downturns
• Often generates consistent income (e.g., dividends, bond yields)

Cons of defensive investing include:

• Lower potential for long-term growth
• May underperform in bullish or high-growth markets
• Overly conservative positioning may not keep pace with inflation

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When Might Each Style Be Appropriate?

Your investment style should reflect your risk tolerance, financial goals, and investment time horizon. Here's when each style might be appropriate:

Aggressive investing might suit you if:

• You have a long investment horizon (10+ years)
• You’re comfortable with market ups and downs
• You’re focused on long-term capital growth rather than short-term stability

Defensive investing might suit you if:

• You’re closer to retirement or need access to funds in the short term
• You value stability and lower risk over high returns
• You’re more focused on preserving wealth or generating income

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Combining strategies: a balanced approach

Many investors don’t choose just one style, they blend aggressive and defensive investments to match their personal investment risk profile. This is known as a diversified or balanced portfolio.

For example:

• Investors with a long horizon might lean 80% aggressive / 20% defensive.
• Those approaching retirement may prefer 30% aggressive / 70% defensive.

Over time, investors often shift toward a more defensive posture as their financial needs change, this is called life-stage investing or glide path investing.

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Is aggressive or defensive investing right for me?

To decide which strategy suits you best, consider the following questions:

• How comfortable are you with investment losses in the short term?
• When will you need access to your invested money?
• Are your goals growth-oriented, income-focused, or a mix of both?

There’s no “one-size-fits-all” answer, many investors adjust their portfolios based on their life stage, financial goals, and evolving risk tolerance.

If in doubt, seeking independent financial advice can help tailor a strategy to your unique circumstances.

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Aggressive and defensive strategies summary

Understanding the difference between aggressive and defensive investing is a foundational step in building an investment plan aligned with your goals. Both strategies serve a purpose and can play a role in a well-rounded investment portfolio.

What is ethical investing?

Investing ethically means choosing to allocate all or some of your investments based on moral, social, religious or environmental values. 

An example would be an ETF that excludes certain industries, such as tobacco, weapons and fossil fuels.

As an individual investor, it can be difficult to ensure harmful industries aren’t included in a fund, as it might be made up of thousands of investments. 

In response to demand, fund managers are increasing their provision of particular ethical investment options, tailored towards different values.

This can be anything from a fund focussed on clean energy solutions, to a Shariah fund that is compliant with Islamic Law. 

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What is thematic investing?

Investing in a particular thematic refers to long-term trends – think clean energy, AI, space innovation.

A lot of thematic investment trends are focussed on ethical themes such as climate and tech innovation, but this isn’t a guarantee. 

ETFs that cover thematics have seen a recent surge in popularity, thanks to availability of lower cost investment options and ever-growing trends in innovation. 

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ESG, SRI and impact investing: What’s the difference?

There are a few terms and acronyms you might see associated with ESG or thematic funds:

• ESG (Environmental, Social, Governance) – This term refers to the framework used to assess the sustainable and ethical commitment of a particular company. You might see this tagged onto the end of a fund name, which indicates it meets the criteria of this framework.
• SRI (Socially Responsible Investment) – This term refers to the social responsibility of an investment. Again, this could be an assessment of a particular company or an ETF made up of these companies than comply with this framework.

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Why do people choose ethical or thematic investing?

There are a few reasons people might choose ethical or thematic investing:

• To align their investments with personal values and drive positive change – think climate progress, healthcare equality, conflict resolution.
• A belief that these investments will outperform other investments over time. For example, a sustainable and innovative sector might see more significant growth and demand, as global regulations tighten
• An opportunity to invest in exciting future trends like AI and space innovation.

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How can you access ethical and thematic investments?

If you’re looking to invest in ethical or thematic investments, there are a few vehicles you can use:

• ETFs & Funds – Such as an ESG focussed multi-asset fund or AI ETF‍
• Stock Picking – Choosing individual companies that align with interests, principles or frameworks
• Robo-advisors – Some offer ethical or thematic portfolios, and preference setting to suit different needs
• Fund ESG/SRI Ratings – Some platforms offer a rating system to help investors identify a fund's ethical commitments

Understand the basics of investment portfolio management.

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How to get started with ethical and thematic investing

If you’re interested in getting started:

• Think about what aligns with your values and interests.
• Look for the right investment fund or asset class for you.
• Start small and aim for diverse exposure.
• Reassess your portfolio annually and make sure it still aligns with your values and goals.

Building a balanced portfolio

Building a balanced investment portfolio is key to smoothing out the ups and downs of the stock market, and ensuring that your long-term goals stay on track. Quick reminder: your portfolio (in investing terms) refers to all the different investment assets you own — stocks, bonds, ETFs, commodities etc. 

Spreading your investments between different assets can help mitigate against overexposure, if the price of a particular asset class suffers a downturn. 

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Focus on your financial goals first

Grounding your investment choices in your goals is a great way to get the most out of your portfolio. Whatever you’re investing in, it’s good to have an idea of why you chose a particular investment and what purpose it serves. 

Investing is best suited to those long-term goals, the outdoor office, that pricey furniture making course, Wimbledon final tickets, turning those big spends that feel out of reach now into your new standard of living. 

A balanced portfolio aims to give investors steadier, long-term growth, as mitigating risk between different assets has historically provided positive returns over a longer period of time. 

See our guide on retirement and long-term investing. You can track your goals and seamlessly link them to an investing account in the Chip app. 

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Assessing your investing risk tolerance

Determining your risk tolerance is key to balancing your portfolio. If you have a longer time horizon to invest, you may be able to tolerate some more risk, as historically markets have always trended upwards over time. 

If you’re approaching retirement, your risk tolerance may be lower as you get closer to your target date.

Some investors choose to allocate a greater portion of lower-risk assets like bonds or cash equivalents, with the aim of preserving capital.

On the other hand, those with more than ten years to stay invested, may take more risk; aiming for greater long-term growth despite short-term volatility.

The right balance depends on your comfort with potential losses, your financial situation, and how long you plan to keep your money in the market.

See our guide on risk, return and investing strategies for a deeper dive.

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Understanding asset allocation

Asset allocation is simply how you split your investments between different types of assets — like stocks, bonds, property, or commodities. Each type behaves differently over time.

• Stocks can offer higher growth potential, but also come with bigger price swings.
  
• Bonds usually provide lower, steadier returns and can act as a buffer during market downturns.
  
• Cash equivalents (like savings accounts) are the safest, but offer the lowest returns.‍
• Alternative assets (like gold or real estate) can add extra diversification.
  

Your mix of these assets should reflect both your goals and your risk tolerance. Someone with decades before retirement might have a higher proportion of stocks, while someone nearing retirement might hold more bonds and cash.

See our guide on asset classes for more details.

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Diversification

Diversification means not putting all your eggs in one basket. By spreading investments across different asset types, industries, and countries, you reduce the impact of poor performing funds dragging down your whole portfolio.

For example, if tech stocks are having a bad year, gains from bonds or commodities could help cushion the blow. A well-diversified portfolio aims to smooth out returns and make the ride less bumpy over the long term.

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Rebalance your portfolio regularly

Over time, some investments will grow faster than others, changing your original asset allocation. This “drift” can increase your risk without you realising it.

Rebalancing means checking your portfolio regularly, every six months or so, and moving money between assets to get back to your target allocation. It’s like course-correcting on a long journey to make sure you stay headed towards your goals. 

We have a whole series dedicated to various investment strategies that can help you stay on track.

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How to build a balanced portfolio summary

Balancing your portfolio starts with knowing your goals, understanding your risk tolerance, and picking an asset allocation that fits both. From there, diversifying and rebalancing are key to managing risk and keeping your plan on track.

Next up in this series: What is asset allocation and why it matters.

When we think of stock market stars, it’s often the US names like Apple, Microsoft, and Nvidia that grab the headlines. But closer to home, a group of UK-listed companies has been quietly outperforming the wider market for years.¹

They’ve been dubbed the “Dashing Dozen”. These are twelve firms that have consistently flown the flag for the UK.
A recent feature in MoneyWeek highlighted them for substantially outperforming the stock market and “clearly doing something right” so let’s take a look.

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Who are the Dashing Dozen? 

This group spans a range of sectors — from defence and engineering to gaming and data services. Some familiar names include:

• BAE Systems – benefiting from increased global defence spending.
  
• Rolls-Royce – rebounding strongly with a surge in aerospace demand.
  
• Games Workshop – the maker of Warhammer, proving that niche hobbies can mean big business.
  
• Next – a high-street and online retail giant with a proven ability to adapt and thrive

Other members of the Dashing Dozen include: London Stock Exchange Group (LSEG), Halma, Diploma, Goodwin, Cohort, Concurrent Technologies, RELX, and 3i Group.

What they have in common is a track record of consistent growth, with all 12 businesses profitable and all paying dividends¹. These are qualities that appeal to investors building a long-term portfolio.

Always remember, when considering any investment, a diverse portfolio across different asset classes, sectors and regions can manage risk and smooth returns.

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Why it matters to you

For years, FTSE 100 has been seen as a bit sluggish compared to US markets, but the “Dashing Dozen” prove that the UK market still packs some punch. 

While not a guarantee of future performance, they do highlight that businesses with durable advantages and strong demand – in sectors like defence, data, and gaming – can offer investors both resilience and opportunity.

So next time you think about your portfolio mix, remember: sometimes the dash for growth doesn’t require looking across the Atlantic – it could be right here at home.

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How Chip can help you take advantage

With Chip, we offer a range of index funds such as the FTSE 100, that include all of these high-growth companies in a single investment, as well as other popular indexes like the NASDAQ 100 and S&P 500.

Open a Stocks & Shares ISA in minutes, invest from £1, and manage everything right from our app. Just go to the ‘Invest’ tab to get started.

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How robo-advisors work

At their core, robo-advisors use algorithms to build and manage diversified investment portfolios based on your personal goals, risk tolerance, and time. The process usually involves:

• Initial Questionnaire: You answer questions about your financial goals, attitude to risk, and investment timeline.
• ‍Portfolio Recommendation: The platform allocates your funds across a range of assets, often using low-cost index funds or ETFs.
• ‍Automatic Rebalancing: Over time, the robo-advisor will adjust your portfolio to maintain your chosen level of risk and diversification.
• ‍Optional Features: Some services may include tax-loss harvesting, goal tracking, or ethical investing filters.

Robo-advisors typically operate under the regulation of the Financial Conduct Authority (FCA) in the UK, providing a layer of consumer protection.

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Pros and cons of using a robo-advisor

One of the key functions of a robo-advisor is that it uses an algorithm to take the emotion out of investing and aims to help an investor achieve better returns. 

This naturally comes with various advantages and disadvantages when it comes to using a robo-advisor. Some of the advantages of using a robo-advisor include:

• Low Fees: Robo-advisors tend to charge lower fees than traditional financial advisers.‍
• Simplicity: Great for beginners; the platforms do most of the work for you.‍
• Diversification: Portfolios are usually spread across multiple assets and geographies.‍
• Automatic Rebalancing: Your investments are maintained without requiring your input.‍
• Regulated: Most platforms in the UK are FCA-regulated, offering a level of trust and oversight.

However, there are some disadvantages of using a robo-advisor, such as:

• Limited Personalisation: Less tailored than advice from a human financial adviser.‍
• Less Control: You typically can’t pick individual investments or stocks.‍
• Not Always Suited for Complex Needs: If you have multiple financial goals or more intricate tax planning needs, robo-advisors might not be enough.‍
• Performance Can Vary: As with all investing, returns are not guaranteed.

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How to choose a robo-advisor

If you're considering using a robo-advisor, here are some key criteria to consider:

1. Fees and Costs: Look at both the platform fee and fund charges. Even small differences in fees can have a significant impact over time. Understand investment fees.‍
2. ‍Minimum Investment: Some platforms require only £1 to start, while others may have higher thresholds. Choose one that fits your current financial position.
3. ‍Portfolio Construction: Check what kind of assets are used, most robo-advisors use ETFs, but the exact approach to diversification can vary.
4. ‍User Experience: A clear, intuitive dashboard and helpful customer support can make a big difference, especially for newer investors.
5. ‍Regulation and Safety: Ensure the platform is FCA-authorised and that your money is held with a custodian covered by the Financial Services Compensation Scheme (FSCS).

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Who are robo-advisors best suited for?

Robo-advisors are particularly well-suited to:

• First-time investors seeking simplicity
• Those who prefer a passive investment approach
• Individuals who want to "set and forget" their portfolio

They may be less suitable if you:

• Want custom financial planning advice
• Are interested in actively managing your investments
• Have complex tax or estate planning needs

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Alternatives to robo-advisors

If a robo-advisor doesn’t seem like the right fit, consider these alternatives:

1. DIY Investing

Using platforms like investment apps or online brokers, you can choose your own funds or stocks. This requires more knowledge and time but gives you full control.

2. Financial Advisers

A qualified human advisor can offer personalised financial planning and investment recommendations and are often helpful if your finances are more complex.

3. Multi-Asset Funds

Some investment funds offer a ready-made diversified portfolio managed by professionals, similar in approach to robo-advisors but without the digital interface.

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Are robo-advisors right for you?

Robo-advisors have opened the door to investing for a new generation of UK savers. By providing a streamlined and automated way to access diversified portfolios, often at a lower cost than traditional financial advice.

For those just beginning their investment journey, robo-advisors can serve as a practical and approachable starting point. 

They handle portfolio management, reduce the need for constant decision-making, and help keep you aligned with your financial goals. However, they aren’t the right fit for everyone.

If your finances are more complex, or if you prefer greater control over your investments, you may want to explore other options such as DIY investing or working with a financial adviser.

Next in the series: ESG and Sustainable Investing Explained, where we explore how to invest with purpose, what ESG criteria actually mean, and what UK investors should consider when aiming to make a positive impact with their money.

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Robo-advisors are not available via the Chip platform. Chip offers self-invested funds that invest in different assets as a collective investment.