Barclays has rolled out 'Ready-made Investments', a new self-directed portfolio construction solution aimed at removing the complexity from investing and enabling investors 'to acquire a diversified fund investment', using 'Barclays' investing expertise'.

This development makes part of Smart Investor, an online direct investing service designed to cover all types of investors. The service launched at the end of last year and will ultimately replace Barclays Stockbrokers, according to Clare Francis (pictured), savings and investments director at Barclays.

"It is currently available to people with a Barclays current account," said Francis. "The next phase of the rollout is to onboard Barclays Stockbroker customers, and after that we will open up the platform to everybody regardless of who they bank with. This is an overall direct investment proposition and as such we will be offering the whole universe of products including mutual funds, ETFs, structured products, etc."

Ready-made Investments are not a Robo-advisory tool but a solution to remove the complexity from investing, allowing customers to effectively build a diversified investment portfolio by investing in individual Barclays funds, said Francis. "Customers can choose between growth or income investments with different risk profiles," she said. "However, these are non-advised products so it is the customer who decides which fund is most suitable for their needs. They offer a way for new and inexperienced investors get access to our range of funds and provide a starting point for those who either aren't confident about choosing individual funds or don't have the time to do the research."

Barclays' Smart Investor customers will now be able to select from a range of existing Barclays funds those funds that match their chosen risk profile and financial goals. Each fund is made up of a mix of investments across different asset classes, giving instant access to a diversified portfolio with global exposure.

"We recognise that there is an advice gap in the UK and there are numerous barriers that prevent retail investors from investing so this solution has been designed to try to make it easier for those investors who cannot pay for advice and break down some of those barriers," said Francis.

In terms of financial goals, customers can choose between 'growth' and 'income' investments. Growth investments aim to increase the value of investments over time, whereas income investments suit those looking for a regular income, according to Francis.

"We want investors to be able to work out what products are right for them and in doing so they will have access to information about the differences between funds, about the different product types (growth/income)," said Francis, adding that education and support are also a focus of the new direct investing service.

The service also provides an education and an "are you ready to invest?" tool 'to ensure customers consider for themselves whether investing is right for them before they commit any money' as the service 'does not provide personal advice'.

Ready-made Investments are available through Barclays' direct investing service carry an ongoing management fee, which is in addition to Smart Investor's customer and transaction charges. The Growth Investment funds have an ongoing management fee of 0.45%, and the management fee for the Income Investment funds is 1.45 - 1.48%. The minimum investment is £50.

"Over the longer term, stock market investments have tended to perform better than cash savings (though of course, past performance of investments is not a reliable indicator of their future performance), and in the current low interest rate environment, stock market investments are one of the few ways that you might still beat inflation while growing a nest egg, albeit at the risk of loss of capital," said Francis. "However, our research shows that uncertainty about what to invest in is still one of the biggest barriers preventing people from getting started. Ready-made Investments are designed for people who understand the benefits of investing and who want the reassurance of a carefully selected range of assets, with a risk level they feel comfortable with."

Related stories:
Barclays targets institutional investors with underpriced stocks

Barclays cashes in on smart beta range

Barclays readies smart beta-linked range

Barclays' Shiller CAPE range gains traction in Europe via Natixis's Ossiam