Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
How to build an investment portfolio with just £1
Ruby Layram
9th Jul 2024
This is a sponsored post for Wealthify
Despite common belief, you don’t need to be a multi-millionaire to start investing in the UK. Investing is available to anyone, as long as you understand that there are risks with investing.
So, what is the minimum amount that you can start investing with? It’s probably much lower than you think! In this article, we will demonstrate how to build an investment portfolio with just £1.
For this post, we are working with Wealthify because the platform offers a range of investment accounts that you can start with £1 (£50 for pensions).
Continue reading to learn more about building a portfolio.
- Step 1: Find a reputable platform with a low minimum deposit
- Step 2: Research different investment options
- Step 3: Fund your investment account with £1 (or more!)
- Step 4: Make your first investment
- Step 5: Set up automated investing
- Step 6: Regularly review your portfolio and rebalance if necessary
- How much could your portfolio grow?
If you would like a little more context about what an investment portfolio is, we have a helpful guide here.
Otherwise, let’s jump right in and take a look at how to build your own investment portfolio with as little as £1.
Step 1: Find a reputable investing platform with a low minimum deposit
If you are looking to start investing with £1, the first step of the process is to find a reputable online investing platform that offers a low minimum deposit.
Wealthify is a good example. This online platform has been winning awards for its excellent services since 2016 and offers a good variety of investing options that you can start with just £1.
Reputable platforms like Wealthify are a good place to start because they are licensed in the UK. This means that they must comply with regulatory procedures that are outlined by the Financial Conduct Authority.
Of course, Wealthify isn’t the only licensed online investing platform that offers a low minimum deposit! It is a good idea to shop around and explore different options before making a final decision.
When looking for an investing platform, consider the type of investment portfolio that you would like to build. For example, Wealthify could be an excellent choice for investing in ISAs but may not be the best choice if you are interested in more advanced investing strategies.
Step 2: Research different investment options
Once you have found an online platform that facilitates investing from £1, it would be wise to spend time researching the different investments that are available.
When it comes to investing, you can never be too informed! Take your time with this step to make sure that you fully understand different types of investments, the risks involved, and the potential profits that you could make.
Step 3: Fund your investment account with £1 (or more!)
By now, you should have decided on:
- A platform to use (that allows you to invest from £1)
- The type of assets that you would like to invest in
The next step is to fund your investing account.
To do this, you will probably be required to connect a payment method to your account. Most online investing platforms accept direct debits and bank transfers. Remember to look for hidden fees that might be involved in depositing funds and opening an account.
Top tip from the MoneyMagpie team:
Always use a secure browser to open an investing account and deposit funds! This will reduce the risk of your details landing in the hands of a cybercriminal.
Before depositing funds, make sure that you can afford to lose the money that you invest. There is no guarantee that the value of your investment will go up.*
*As with all investing your capital is at risk, so the value of your investments can go down and up meaning you could get back less than you initially invested.
Step 4: Make your first investment
It might take a few days for your money to appear in your investing account. This is normal and will depend on the type of payment method that you use as well as the platform’s processes.
As soon as your money is available in your account, you will be able to go ahead and make your first investment. Wealthify is a robo-advisor digital platform that provides automated, algorithm-driven financial planning and investment services with a little help from their talented investment experts.
This process will differ depending on what platform you use and what type of investment you would like to make. However, it usually involves the following steps:
- Search for the investment you would like to make using the platform’s explore feature.
- Set the parameters for your investment.
- Double-check the details of the investment and verify the transaction.
- Wait a few moments for the investment to process.
Also read: How to start investing in stocks
Step 5: Set up automated investing
Even though it is possible to start building an investment portfolio with £1, historically a monthly or regular investment could help your portfolio grow however this is not guaranteed.
The easiest way to do this would be to set up automated monthly investments. This means that you can invest money each month without needing to remind yourself.
For example, Wealthify, along with other providers, allows users to set up a monthly direct debit. This makes it possible to add money to your portfolio passively from your bank account each month. When the money is taken from your bank account, it is automatically invested based on your terms and risk preferences.
Step 6: Regularly review your portfolio and rebalance if necessary
It is a common investing myth that you have to watch your portfolio like a hawk every day.
While this isn’t true, it is a good idea to review your portfolio every few months to check that it is meeting your long-term goals.
It is normal to see fluctuations every now and then. However, huge losses might be a sign that you need to contact your platform but some robo-advisors would manage this on your behalf.
We have a helpful guide on how to spring clean your portfolio that explains how to rebalance.
How much could your portfolio grow?
The estimated growth of an investment can be difficult to project, there are so many contributing factors, including personal circumstances, to investment performance.
If you would like to get a projection, you can use online investment calculators like Wealthify’s to work out how much your portfolio could grow based on your own monthly contributions, type of investments you hold (Stocks and shares ISA, General investment account etc.), type of risk level and projected growth rate for the duration of your investment.*
*Please remember that the value of your investments can go down as well as up, which means you could get back less than you initially invested.
As we have already mentioned, there are no guarantees that the value of your investment portfolio will grow. The stock market can be volatile and susceptible to uncertainty. Before making any investment decisions, consider contacting a financial advisor should you need more help or support in making those decisions.
Are you interested in learning more about investing? Why not sign up to the MoneyMagpie bi-weekly Investing Newsletter? It’s free and you can unsubscribe at any time if you find it isn’t for you.
As with all investing your capital is at risk, and you could get back less than you put in.
Wealthify does not provide financial advice. Please seek financial advice if you are unsure about investing.
Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future.
Some of the products promoted are from our affiliate partners from whom we receive compensation. While we aim to feature some of the best products available, we cannot review every product on the market.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
Find out more about Wealthify here.
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