LET A ROBOT DO THE WORK OF CHOOSING YOUR FUNDS

IF YOU want a stocks and shares Isa where all the hard work is done for you, then consider opting for one of the robo-advisers that have arrived in recent years.

Simply answer a few questions about your attitude to risk, your investment goals and how much you can afford to invest, and the robo-adviser will match you to one of its ready-made portfolios.

Such a robo-adviser can eliminate the tricky process of having to select from a number of funds that you may not know much about.

Nutmeg is the oldest roboadviser in the UK, having been around since 2011. You can choose from four investment styles – fully managed, socially responsible, ‘smart alpha’ and fixed allocation.

It has a platform fee of 0.45 per cent a year on the fixed allocation option and 0.75 per cent a year on the others. This goes down to 0.35 per cent a year if you have more than £100,000 invested. On top of that you pay fund charges, with average underlying investment costs of up to 0.26 per cent per annum.

Cheaper alternatives have come on to the market since Nutmeg’s arrival. Wealthify has an investment Isa with a 0.6 per cent annual platform charge, plus average yearly fund manager charges of 0.22 per cent.

For Wealthify, you’ll be asked to select your investment style – cautious, tentative, confident, ambitious or adventurous – and choose between ethical or standard investments.

Once you’ve selected how much you want to invest, you’ll be presented with a portfolio that best matches your requirements.