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 Junior ISA Review
Name: Nutmeg Junior ISA
Description: 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.
Summary
- Investments: Pre-made portfolios
- Minimum deposit: £100
- JISA account charge: 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%.
Pros
- Simple managed JISA
- Regular investing is available (one off payments or Direct Debits)
- Scaled account fees that reduce as your portfolio grows
Cons
- Cannot invest in individual shares
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Pricing
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Market Access
(3.5)
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Online Platform
(4.5)
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Customer Service
(4.5)
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Research & Analysis
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Overall
4.1
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