Does Auto Invest work the way you expect?

Product Feedback
1

I just had surplus cash invested in one of my pots using the Auto Invest feature. It was not invested how I expected. This was annoying.

Assume I have a portfolio with 2 stocks, A and B, and that my desired weighting is 50% each. Now assume that the current weighting is 100% stock A, and the pot value is £1000. If I add £100 cash to my pot, with Auto Invest on, I would expect the system to buy stocks in a fashion that would most bring my current weighting inline with my desired weighting. In this case, that would mean investing the whole £100 in stock B.

However, my money was not invested in this way. It was invested 50% into each stock, i.e. according to the desired weightings only, ignoring current weightings. I find that odd. How do others feel?

2

@Bob79

That’s the way it is supposed to work.

If you rebalance the portfolio it will put everything back to the target weights you set.

https://help.investengine.com/hc/en-gb/articles/4911141942557-How-can-I-make-use-of-the-Rebalance-Portfolio-feature

3

I always thought it was just a simple instruction of what to do with each investment so it’s working as expected for me.

4

I don’t like auto invest because even though we are investing solely in ETF’s you have no opportunity to take advantage of a falling, post dividend price drop; which often happens. Additionally, IE trades at quite a leisurely pace thus you potentially ‘miss out’ Remember the Trump dip around Liberation Day?

5

Hi, well… there are options out there who allow immediate purchase/sale - maybe give them a try?

6

Hi @Bob79, feel free to drop us a message at support@investengine.com, and we’ll be happy to check your account and assist you with any AutoInvest questions you may have.