What is an IG Smart Portfolio and what investment options are available?
What is an IG Smart Portfolio?
An IG Smart Portfolio enables you to invest in an actively managed portfolio, each designed by BlackRock, the world’s largest asset manager, using iShares ETFs (exchange traded funds). This means that you won’t need to place your own trades as your portfolio will be managed for you by IG. Our experts will fully manage your portfolio, who’ll rebalance it as market conditions change to keep it performing in line with your goals.
What are the investment options?
There are five IG Smart Portfolios that vary according to risk level and investment objectives. Before investing, you’d first need to set your investment goals and answer a short risk questionnaire to discover a suggested portfolio:
1. Conservative portfolio
This portfolio is designed for investors who are either very risk-averse or have short-term objectives. Investments are placed in fixed-income products, and exposure will be primarily allocated to UK and US government bonds as well as corporate debt, with additional exposure to high-yield, index-linked and emerging-market bonds. Returns will mainly be achieved by reinvesting income, and there is very little scope for capital growth.
2. Moderate portfolio
This portfolio is designed for investors that are looking to protect their savings, but still want to keep ahead of inflation in the long run. Investments are primarily made in fixed-income products such as government, corporate and high-yield bonds, but also has some exposure to global equities and alternative assets such as gold.
3. Balanced portfolio
This portfolio is designed for investors that want to grow their savings over time but want to do so with the improved diversification that fixed-income products can provide. Investments are made in a blend of fixed-income products and global equities, with the addition of some alternative assets such as gold. Returns from this portfolio will be achieved through a mixture of capital growth and reinvesting income.
4. Growth portfolio
This portfolio is designed for investors with a high tolerance for risk, who are prepared to see sizeable fluctuations in the value of their investments in order to achieve long-term growth. Investments are primarily placed in global equities, with additional diversifying exposures to fixed-income products and alternatives. Returns from this portfolio will mainly be achieved through capital growth, but also by reinvesting income.
5. Aggressive portfolio
This portfolio is designed for investors with a very high tolerance for risk, or those with an extended time horizon who can afford significant fluctuations in their savings as they try to achieve higher long-term growth rates. It predominantly invests in equities, with residual exposure to fixed-income products and alternatives. Returns from this portfolio will mainly be achieved through capital growth, but also by reinvesting income.
What types of IG Smart Portfolio accounts are there?
We offer two types of IG Smart Portfolio accounts:
- General Smart Portfolio
- ISA Smart Portfolio
How much can I invest in a general Smart Portfolio or an ISA Smart Portfolio?
There’s no contribution limit for general Smart Portfolios. However, ISA Smart Portfolios have an annual subscription limit of £20,000. This limit is shared with your ISA Share Dealing account and runs from 6 April each year to 5 April the following year. You can find more information on stocks and shares ISAs on Her Majesty’s Revenue Customs (HMRC)’s website.
Is there a minimum investment period?
IG Smart Portfolios are designed to be a long-term investment. However, there’s no minimum investment period. As markets can fluctuate in cycles, so can the value of your Smart Portfolio. We usually recommend a minimum investment period of five years.
