Vanguard launches automated investment feature

Yasmine Raso

Senior Journalist, Financial Newswire

16 November 2021

Vanguard has launched an automated regular investment feature for managed funds on its Personal Investor platform, Auto Invest, to offer investors who invest regularly a simple and automated process.

The new feature will provide investors with the ability to set up an automated schedule of investment amounts into one or a range of Vanguard managed funds, from $200 either fortnightly, monthly or quarterly.

The Auto Invest tool is part of Vanguard’s ongoing commitment to continued enhancement of the Personal Investor platform.

“Our Personal Investor platform was built to support our investors’ long-term investment success and we think Auto Invest will become a really key aspect of the investing experience with us, supporting a sensible and proven investment strategy,” Balaji Gopal, Vanguard’s Head of Personal Investor, said.

“Modelling we commissioned shows that making the choice to focus on maximising regular contributions and minimising costs can help investors achieve their financial goals without needing to adopt a riskier investment strategy in this low yield environment.

“The launch of Auto Invest will make this an easier choice through a simple process that automates good habits.”

Gopal also said the modelling highlights the importance of investors to make smart choices today and stick with them through unavoidable volatility in order to achieve successful financial future.

“Data from Vanguard’s UK Personal Investor platform shows that more than a third of UKPI’s investors use the Auto Invest feature,” Gopal said.

“We hope that since many of our clients already regularly contribute to their accounts, this automated regular investment feature will further encourage and make it easier for them to be disciplined as they build and diversify their wealth over the long-term.”

Auto Invest currently enables investors to invest regularly in Vanguard’s broad range of unlisted managed funds, but Vanguard has signalled plans to add exchange traded funds (ETFs) to the feature soon.

“As we continue to evolve our offering, our overarching intention is to support our investors in making smart investing decisions,” Gopal said.

“We want to make sure that our existing products continue to be best in class as we strategically invest in the development of new products, services and capabilities that help our clients achieve their financial goals.”