Approved by Nutmeg on the 11 September 2023
Nutmeg Review
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.
Summary
A 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 on average 0.07%. 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
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Pricing
(4)
-
Market Access
(3.5)
-
Online Platform
(5)
-
Customer Service
(5)
-
Research & Analysis
(3.5)
Overall
4.2Facts & Figures
| ⬜ Public Company | ✔️ (owned by J.P. Morgan) |
| 👉 Number Active Clients | 200,000+ |
| 💰 Minimum Deposit | £500 |
| 💸 Client Funds | £4.5 billion+ |
| 📅 Founded | 2011 |
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 included in their managed portfolios) |
| ➡️ US Stocks | ❌ (but they included in their managed portfolios) |
| ➡️ ETFs | ❌ (but they included in their managed portfolios) |
| ➡️ Bonds | ❌ (but they included in their managed portfolios) |
| ➡️ Funds | ❌ (but they included in their managed portfolios) |
Awards
- Best robo-advisor 2023
- Best private pension 2023
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.
Richard’s Review
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.
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 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% |
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