Ready-Made Index Funds and Managed Hargreaves Lansdown Investments are now available on HL for those who want a bit of help with their investments.
A new range of index funds were made available from June 6th and complement the firm’s existing HL-managed ready-made fund range that was launched in 2023.
The four new Hargreaves Lansdown index funds are ranked by risk from most potentially profitable to least:
- HL Multi-Index Adventurous – asset allocation typically 100% shares – aiming for 90-110% volatility of global equity markets.
- HL Multi-Index Moderately Adventurous – asset allocation typically 80/20 split between shares and bonds – aiming for 70–90% volatility of global equity markets.
- HL Multi-Index Balanced – asset allocation typically 60/40 split between shares and bonds – aiming for 50-70% volatility of global equity markets.
- HL Multi-Index Cautious – asset allocation typically 30/70 split between shares and bonds – aiming for 30-50% volatility of global equity markets.
Hargreaves Lansdown CIO, Toby Vaughan said:
“HL clients’ investment in index funds has risen by more than two and a half times over the last 7-years, and the number of clients holding index funds as their main investment has increased by 80% over the last 2 years.”
“Our new ready-made multi-index investment portfolios add further choice for investors to meet that demand and are an easy cost-efficient solution for those looking to get started with investing.“
He added that
“They are part of our evolving strategy, which aims to expand and improve the range of investment options we provide to clients at all stages of their investment journey, from beginners to highly experienced investors.”
A move towards managed investments
Robo-advisors or digital wealth managers are becoming more and more popular as new investors enter the stock market in search of better returns. However, as HL has traditionally been a DIY investing platform, some investors may have been put off by having to choose their own investments. With that in mind the HL Index funds aim to be:
- Straightforward – investors can choose from either an active or index all-in-one portfolios
- Managed – there is no need to pick investments as expert fund managers make investment decisions
- Diversified – you can gain exposure to a range of investment styles and approaches in global investments.
- Rebalanced – the investment managers update portfolios to stay on track and stay aligned to the chosen level of risk.
- Clarity – it is possible to view investment performance, online or via the Hargreaves Lansdown app 24/7.
A balancing act
Hargreaves Lansdown built its reputation and its business by being a platform, offering third-party products and low-cost brokerage services to retail investors.
One can see why the firm, which has more than 2.0 million active investment accounts and £142.0 billion of assets under administration wants to offer more in-house products to its end customers, rather than just be a re-seller of and portal for other firms’ funds and services.
However, it must not lose sight of the values and business model that built the firm in the first place. Not least because its 40% share of the UK investing platform market makes it the number one target for its competitors.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
