Nutmeg Review: Add a little spice to your investments

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Because Nutmeg is no longer a disruptive start-up and is now owned by a massive financial institution with a compliance department larger than the investment team (maybe, I haven’t checked) every word we write needs to be approved by them before we publish it. Thankfully, Nutmeg is a long-term investment platform and nothing really changes much other than the odd bit of portfolio allocation. On the plus side though the FCA has not insisted on customer reviews being approved by a regulated person yet, so do us a favour and tell other people what you like or dislike about Nutmeg in the customer reviews section.

Nutmeg Customer Reviews

4.4
4.4 out of 5 stars (based on 531 reviews)
Excellent55%
Very good30%
Average13%
Poor2%
Terrible0%

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  • Tell us what you think of this company and help others make more informed financial decisions.

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Nutmeg Expert Review

Approved by Nutmeg on the 11 September 2023

Nutmeg Review
Nutmeg

Name: Nutmeg

Description: Nutmeg were among the first digital wealth managers set up in the UK, known as “robo-advisors”. Despite the term robo-advisors being used, it is an investment team that makes the investment decisions. The term robo-advisors refers more to taking the process of building a diverse portfolio automatically online.
Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Is Nutmeg any good for investing?

Yes, Nutmeg is very easy and low-cost way to invest in a range of diverse pre-made portfolios created by experts and are part of J.P. Morgan.


  • Investments: 5 investment styles are made up of 34 individual portfolios
  • Account types: GIA, ISA, Pension, JISA, LISA
  • Management fee: 0.75% to 0.45% 

Fees: Nutmeg charge 0.75% for their managed portfolios which drops to 0.35% for balances over £100k. For their fixed allocation portfolios, they charge 0.45% dropping to 0.25% for balances over £100k. For all portfolios, there is an addition charged by the investment fund manager of around 0.2% and the market spread on buying and selling portfolios is currently between 0.04% and 0.09%. More information on fees and products can be found here.

Pros

  • Great for beginners
  • Risk-based funds
  • Socially Responsible Portfolios

Cons

  • High £500 minimum investment
  • 0.75%* account fee higher than Wealthify
  • Cannot invest in individual shares
  • Pricing
    (4)
  • Market Access
    (3.5)
  • Online Platform
    (5)
  • Customer Service
    (5)
  • Research & Analysis
    (3.5)
Overall
4.2

It’s pretty hard to write a review of Nutmeg, becuase, you probably already know what they do and you know they do it well because we awarded them “best robo-advisor” and “best private pension” in our 2023 awards. So I haven’t, I’ve taken poetic inspiration from a digital source and improved it. Just like how Nutmeg is a robo-advisor, but is actually a digital wealth manager run by humans who use automation to streamline the process. I’ve followed Nutmeg since it’s inception, when it blew the cobwebs away from the fuddy-duddy wealth management industry and along with Wise can be credited as being one of the most influential and disruptive companies to help make finance more accessible over the last two decades. I never got the chance to interview Nutmeg’s founder, Nick (as I have interviewed most other investment platform CEO’s and founders), who sadly died after Nutmeg was acquired by J.P Morgan for $700m in 2022, he was 43, I’m 43.

If you want to know if you should invest with Nutmeg, my answer is an invariable yes, because the sooner you start investing the harder your money will work for you. If you need more convincing, it’s not just me that thinks so, even John Lewis Finance has entrusted them with the trust of their customers…

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Ode to Nutmeg

Oh Nutmeg, a pioneering robo-advisor so bold,
With algorithms and clever humans untold.
In the realm of finance, they’ve carved a way,
To guide investors through the stockmarket’s sway.

With prudence and precision, their portfolios dance,
Crafting alpha and beta with mathematical romance.
They seek diversification, the investor’s golden art,
To shield your wealth, your retirement, so start.

It’s a robo-army, an army of digital wealth,
They work day and night, with unyielding stealth.
Analyzing data, scanning the trends,
In the vast sea of investments, making regular amends.

Oh, Nutmeg, this conductor of your fiscal fate,
Trust in their prowess, and they will guide you straight.
Through bull and bear markets, they’ve seen it all,
Shielding your portfolios from potential downfall.

With a sprinkle of risk, and a dash of return,
They balance the scales, making your money earn.
Rebalancing deftly, with nimble grace,
They keep you on track, in this financial race.

Oh, Nutmeg, the compass of our financial quest,
The fees are fair, sometimes less than the rest.
Low-cost and transparent, keeping costs tight,
With no hidden exit fees, management fees are light.

An intuitive platform, a user’s delight,
Bringing simplicity with strict compliance oversight.
From novices to veterans, they make investing a cinch,
Making investing accessible, not just for the rich.

Oh, Nutmeg, the robo advisor of our dreams,
You’ve revolutionised investing it seems.
With Hungerford’s influence in your hearts,
We commend your service, and thanks for playing your part.

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Nutmeg Awards

  1. Best robo-advisor 2023
  2. Best private pension 2023
  3. Best lifetime ISA 2022

YouTube video

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Nutmeg Facts & Figures

⬜ Public Company✔️ (owned by J.P. Morgan)
👉 Number Active Clients200,000+
💰 Minimum Deposit£500
💸 Client Funds£4.5 billion+
📅 Founded2011
Account Costs
➡️ Investment Account
0.45% – 0.75%
➡️ SIPP
0.45% – 0.75% (managed pension)
➡️ Stocks & Shares ISA
0.45% – 0.75%
➡️ Junior ISA
0.45% – 0.75%
➡️ Lifetime ISA
0.45% – 0.75%
Dealing Costs
➡️ UK Shares
❌ (but they are included in their managed portfolios)
➡️ US Stocks
❌ (but they are included in their managed portfolios)
➡️ ETFs
❌ (but they are included in their managed portfolios)
➡️ Bonds
❌ (but they are included in their managed portfolios)
➡️ Funds❌ (but they are included in their managed portfolios)

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Should you go for a Nutmeg ISA or GIA?

If you have already opened an ISA this year and used your allowance you should open a Nutmeg GIA. But, if you don’t already have one a ISA should be your first investing account as you do not have to pay capital gains tax on the first £20k you invest in it each year.

  • Investments: Pre-made portfolios
  • Minimum deposit: £500
  • Account types: GIA, ISA, Pension, JISA, LISA
  • Management fee: 0.75%-0.45%
  • Dealing fee: £0

Fees:

Nutmeg charge 0.75% for their managed portfolios which drops to 0.35% for balances over £100k. For their fixed allocation portfolios, they charge 0.45% dropping to 0.25% for balances over £100k. For all portfolios, there is an additional charge by the investment fund managers of around 0.2% and the market spread on buying and selling portfolios is currently between 0.04% and 0.09%. More information on fees and products can be found here.

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

What is Nutmeg’s Lifetime Stocks & Shares ISA?

Under 40, struggling to save as much as you need? If so, Nutmeg’s lifetime stocks and shares ISA may just be the solution you’ve been looking for. Since the Government launched the Lifetime ISA in 2017, a growing number of investment firms have been getting in on the act. One of these is Nutmeg who clearly see this as a chance to offer a financial product tailored to the needs of millennials.

Lifetime ISAs were launched to address the savings gap among millennials. This generation, which hit financial independence in the midst of the 2008 recession, has found it tough to put aside substantial sums for retirement. Stagnant wages combined with a high cost of living mean getting onto the housing ladder remains a pipedream for many.

As for saving for retirement? Forget it. A study from the FCA found that 15 million people aren’t saving for retirement. Even those who are, often aren’t saving enough. Lifetime ISAs are the Government’s way of changing the story.

Who can invest in Nutmeg’s Lifetime Stocks & Shares ISA?

Nutmeg’s lifetime ISA is open to anyone over the age of 40 and allows you to save up to £4,000 per year without paying tax on any future returns up to the age of 50. For every £4 you invest, the Government will top it up with a £1 bonus up to a maximum of £1,000. That’s potentially a huge amount of free government money every year.

Interest is gathering pace with a number of other providers including Hargreaves Lansdown, AJ Bell and Newcastle Building Society also offering their own products. However, investing in an ISA is not without its risks and returns can fall as well as rise.

What does Nutmeg Invest in?

Nutmeg Investment’s approach is to invest in Exchange Traded Funds (ETFs). These are more transparent and offer a lower cost and adopt a more conservative approach of tracking the market rather than trying to beat it. With no hidden fees, their approach is to be seen as offering the best value for money on the market.

Setting up is relatively easy. All you have to do is pay in a sum of between £100 and £4,000 to get started. For those who had given up hope of being able to save enough to get on the property ladder or retire comfortably, therefore, this does offer an attractive option. As with anything, though, it pays to check the terms and to make sure this is the best option for your circumstances.

We rate Nutmeg’s Lifetime ISA as very good as it is a simple and low-cost way to invest in managed portfolios and take advantage of the government’s 25% top-up bonus.

  • Investments: Pre-made portfolios
  • Minimum deposit: £100
  • LISA management fees: 0.45% – 0.75%
  • LISA share charges: n/a

LISA Fees: A Lifetime ISA with Nutmeg costs 0.75% for their managed portfolios which drops to 0.35% for balances over £100k. For their fixed allocation portfolios, they charge 0.45% dropping to 0.25% for balances over £100k. For all portfolios, there is an addition charged by the investment fund managers of around 0.2% and the market spread on buying and selling portfolios is on average 0.07%.

Owned by JP Morgan, Nutmeg won the “Best Lifetime ISA” category in our 2022 award, offering one of the simplest low cost LISAs with a range of low, medium and high-risk options.<

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

What is the Nutmeg app used for and is it any good?

You can use Nutmeg’s app to invest in a GIA, ISA or pension and track the performance of your portfolios. However, you will be able to do more research and find more information to get a better understanding of the risk and products if you use Nutmeg on a laptop or desktop computer.

Nutmeg Investment App

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Is Nutmeg good for Junior ISA investing?

Yes, Nutmeg is a very simple way for you to invest for your children in a Junior ISA for when they turn 18. Nutmeg’s JISA portfolios are linked to the stock markets which typically outperform cash interest rates and inflation. But, the stock market can be choppy and sometimes goes down, so if you don’t want to take any risk a cash ISA like Hargreaves Lansdown Active Savings may be more appropriate.

Nutmeg’s Junior ISA is good for parents who do not need such a wide range of investment options from platforms like Hargreaves Lansdown, Interactive Investor and AJ Bell as you cannot buy individual stocks or funds. Instead, you invest in pre-made portfolios built up from low-cost ETFs. This is a great way to build a cheap and diverse investment ISA for your children for investors who are willing to take on some level of risk. There are no dealing costs, and the fully managed account costs 0.75% per year.

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Nutmeg Thematic Portfolios

In October 2023 Nutmeg added a new thematic portfolio style to its range of products.

The new Thematic Portfolios, from the investment manager, will allow Nutmeg clients to put their money directly into the trends and themes that will shape our future.

Nutmeg will offer investors access to portfolios encompassing three broad-brush themes, which are, Technological Innovation, Resource Transformation and the Evolving Consumer.

These new thematic portfolios are designed as long-term investing strategies, that will invest in companies that are likely to benefit from trends, such as the growth and adoption of artificial intelligence, the transformation to renewable energy sources, and away from fossil fuels and the changing demographics of our populations.

Thematic Portfolios Selection

Nutmeg will use its research and technological capabilities to select and manage the underlying investments, in these thematic portfolios. While at the same time diversifying their exposure and avoiding risk concentration.

Clients that open a thematic portfolio will see their investments “tilted” towards the theme of their choice, the tilt will be as large as 20% of their portfolio’s equity exposure.

The portfolio will be actively managed by Nutmeg on the client’s behalf, and subject to an annual review.

Added Risk

Will all Nutmeg clients be able to access the Thematic Portfolios?

No, the new Thematic Portfolios won’t be available to all Nutmeg customers. Only those who are comfortable with the firm’s risk level 5 will be able to invest in thematic funds.

Thanks to their high level of equity exposure, low level of bond exposure, and the FX risk involved in investing overseas markets, and in particular in the US Dollar.

Nutmeg’s lower risk-rated portfolios, which run from 1 to 4, typically have higher rates of bond ownership and seek to minimise the FX exposure in their portfolios.

The new Thematic Portfolios are available for ISA and Junior ISA holders, with a minimum investment of £500 and £100 respectively and Nutmeg will charge 0.75% per annum management fee.

Interestingly the new portfolios won’t incorporate any ESG considerations, though it’s very likely there will be some crossover, given the nature of the broad brush themes themselves.

Nutmeg’s new Thematic Portfolios seem like a good way to gain diversified exposure to trends, that will undoubtedly play a big part in all our futures.

Retail investors, who can accept higher rates of equity exposure, may well prefer to use Nutmeg’s investment and money management expertise, to build and run their portfolios for them.

Rather than adopting a DIY approach, using their own ETF and stock selections, and to be honest fees of 0.75% per annum don’t sound exorbitant for a discretionarily managed service.

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Is Nutmeg good for ISA investing?

Yes, I think that Nutmeg has transformed the way people invest in ISAs for good. Nutmeg were the first provider to make investing in a stocks and shares ISA easy online and remain one of the best ways to put your money to work in a tax-free wrapper.

Nutmeg offers off-the-shelf portfolios across its ISA range to suit five different investment styles. Investors can choose between four different portfolios, including fully managed, Smart Alpha powered by J.P.Morgan Asset Management, socially responsible and fixed allocation.

Yes, Nutmeg’s ISA lets you invest in pre-made portfolios with a minimum deposit as low as £500 with discounted account fees of 0.45%

Fees: Nutmeg charge 0.75% for their managed ISA portfolios which drops to 0.35% for balances over £100k. For their fixed allocation ISA portfolios, they charge 0.45% dropping to 0.25% for balances over £100k. For all portfolios, there is an additional charge by the investment fund managers of around 0.2% and the market spread on buying and selling portfolios is currently between 0.04% and 0.09%.

More information on products and charges can be found here.

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Is Nutmeg’s pension any good?

Yes, it is safe to invest in a pension with Nutmeg as they are regulated by the FCA an owned by J.P. Morgan (one of the largest banks in the world). However, there is risk with all investing and all pensions are linked to the stock market so there is a risk that at some point your investments could be worth less than when you started.

Nutmeg has created five pension styles (portfolios) which have been built by experts and use exchange-traded funds to diversify across stocks, bonds, industries, and countries. This also importantly keeps costs down.

Nutmeg pensions cost 0.75% for their managed portfolios which drops to 0.35% for balances over £100k. For their fixed allocation portfolios, they charge 0.45% dropping to 0.25% for balances over £100k. For all portfolios, there is an additional charge by the investment fund managers of around 0.2% and the market spread on buying and selling portfolios is currently between 0.04% and 0.09%. More information on fees and products can be found here.

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

Nutmeg FAQ:

Yes, Nutmeg is regulated by the FCA which means that your funds may be protected (up to a point) by the FSCS. However, it’s important to note that when you invest the value of your portfolio can go up as well as down.

Using a fully managed investment account is worth it if you are not confident in choosing specifically what you want to invest in for your future. By using a managed platform like Nutmeg, they regularly adjust your portfolio to balance risk.

Nutmeg’s fixed allocation fees are some of the lowest in the industry and cheaper than Wealthify and Moneyfarm, However, their other portfolios are slightly higher. You can compare robo-advisor fees here.

Nutmeg invest in ETFs to build globally diversified portfolios, these are tailored to your goals and risk profile, and invested in exchange traded funds (ETFs). ETFs are a great way to invest as they follow the stock market and give you exposure to a wise range of investments without having to buy each one. You can read more in our guide to ETFs.

Nutmeg Performance

Nutmeg managed portfolios 2020 performance 2019 performance
1 0.80% 1.20%
2 3.00% 5.10%
3 4.40% 7.40%
4 5.10% 8.90%
5 6.20% 11.10%
6 6.10% 12.70%
7 6% 15%
8 6% 17%
9 6.80% 18.30%
10 7.10% 18.70%
Past performance is not a reliable indicator of future performance. For more information on past performance click here.
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