Summary of "How I grew my Investment Portfolio by £100,000 in One Year"

Summary of Finance-Specific Content from “How I grew my Investment Portfolio by £100,000 in One Year”

Portfolio Growth & Returns

Portfolio grew by over £100,000 in one year, now valued at approximately £430,000.
Targeted average returns: 8% per year.
Projection: Over £1 million in 5 years at the current growth rate.
Monthly investing examples:
- £300/month at 8% over 20 years → ~£177,000
- £300/month at 10% → ~£228,000 (+£50,000 vs 8%)
- £300/month at 12% → ~£297,000 (+£120,000 vs 8%)
- Increasing income and investing more (£500/month at 8%) → ~£295,000 (similar to 12% returns)
- Investing £800/month at 8% → ~£470,000
Emphasizes that earning more and investing more beats trying to beat the market by picking stocks or timing.

Income Strategy

Increased income is a primary driver of portfolio growth.
Previously earned around £50,270/year from a web design business, deliberately kept below higher tax thresholds (basic rate taxpayer).
Shifted mindset to embrace higher income and tax implications for growth.
Side hustles, sponsorships, and affiliate income from YouTube supplemented earnings.
Stressed the importance of increasing income over cutting small expenses:
- Saving £100/month → £62,685 over 20 years
- Earning an extra £10,000/year → £522,379 over 20 years
Encourages openness about earning more and side hustles.

Investment Strategy

Adopted a “lazy investor” approach about 6 years ago:
- Focus on broad index funds, long-term holding, low fees.
- Avoids checking portfolio frequently or chasing performance.
- Removes emotional and fee-related risks (citing John Bogle’s quote: biggest enemies are fees and emotions).
Warns against market timing and individual stock picking due to risk of large losses:
- Example: One bad year (-20%) can reduce portfolio from £54,000 to £40,000, dragging down 20-year returns significantly.
- Multiple bad years could wipe out decades of gains.
Mental space saved by avoiding constant portfolio monitoring is a key benefit.

Fees & Costs

Reduced investment fees as a critical lever for wealth growth.
Initially underestimated impact of fees (0.2% vs 1.5%) but learned fees compound heavily over decades.
Referenced Investing Demystified by Lars Kroger:
- Higher fee investor ends up £300,000 worse off over a lifetime compared to low-fee investor with same returns and contributions.
Switched to cheaper funds and platforms, cutting unnecessary costs.
Emphasizes controlling fees as the only controllable factor in investing.

Account Structure & Tax Efficiency

Shifted focus from solely becoming an ISA millionaire to building the largest, most tax-efficient portfolio possible.
Maximized pension contributions (SIPPs), especially valuable for higher-rate taxpayers due to 40% tax relief plus National Insurance savings.
Current priority order for money flow:
1. Business account (liquid, flexible)
2. Pension (SIPP) for tax efficiency
3. Lifetime ISA (government bonus)
4. Regular ISA for flexibility and tax-free income later
Uses multiple accounts synergistically rather than focusing on one “magic” account.
Recognizes pensions as a powerful tool for accelerating portfolio growth.

Market Timing & Cash Reserves

Keeps cash reserves in business for opportunistic investing.
Example: Bought £18,000 in usual funds and £3,500 in emerging markets during market dip (April 11), acquiring units at ~£78 vs previous £90, now worth ~£100 (approx 28% gain).
Acknowledges market timing is risky and doesn’t recommend it for everyone but finds it advantageous with available cash.
Balances cash deployment carefully, not investing all at once.

Platform Recommendation

Sponsored by IG, a UK-based, FCA-regulated investment platform.
Key features:
- Zero commission on UK, US, European, and Australian shares in many markets.
- Access to 12,000+ shares and ETFs globally for broad diversification.
- Supports Stocks & Shares ISAs, SIPPs, and general investment accounts.
Current offer: Invest £200 between Jan 17-30 and hold until Feb 28, 2026, to receive up to £1,000 in free US shares.
Recommended for long-term investors seeking low-cost, diversified portfolios.

Methodology / Framework Summary

Increase income significantly rather than just cutting expenses.
Invest regularly in broad, low-cost index funds.
Avoid emotional investing: no market timing or chasing returns.
Minimize fees by choosing low-cost funds and platforms.
Use tax-efficient accounts strategically: business funds → pension → lifetime ISA → regular ISA.
Maintain cash reserves to invest opportunistically during market dips.
Focus on system and structure rather than chasing returns or single accounts.

Key Numbers

Portfolio now: ~£430,000
Growth last year: +£100,000
Income previously capped: ~£50,270/year
Pension tax relief: 40% for higher rate, 20-25% for basic rate
Monthly investment examples: £300, £500, £800 at 8-12% returns
Fees impact: £300,000 difference over lifetime between high and low fee funds
Market dip investment units bought at £78 vs usual £90, now worth ~£100

Disclaimers / Notes

Not explicitly stated as financial advice, but personal experience shared. Market timing acknowledged as risky and not recommended for everyone. Emphasizes individual circumstances vary; strategy tailored to personal goals and risk tolerance.

Presenter / Source

The video is presented by a UK-based individual investor and YouTuber who runs a web design company and creates finance-related content.
References John Bogle (index fund pioneer), Lars Kroger (Investing Demystified), and JL Collins (The Simple Path to Wealth).
Sponsored by IG trading platform.

Overall, the video advocates a disciplined, income-focused, low-cost, tax-efficient, and emotionally detached investment strategy centered on broad index funds and smart use of accounts, combined with a focus on increasing income rather than obsessing over market beating.