Welcome to the nutmeg review page on OFF3R. This page provides key information about the nutmeg investment process. The nutmeg review page has been developed as part of the Investment Platform review series on OFF3R.
|Regulatory Status||Fully FCA Authorised|
Nutmeg is one of the UK’s first online discretionary investment management companies, with an aim to build and manage intelligent portfolios, ISAs and Pensions for a single low management fee. Nutmeg learns about you, chooses investments for you and, with your contributions, builds your portfolio.
Nutmeg is aimed at both short and long-term investors. The minimum investment amount is £500, however if you’re investing below £5,000 they require you to set-up a recurring contribution of at least £100 per month to grow your account. You can choose from 10 different risk rankings ranging from ‘Avoiding loss is the priority’ to ‘I’ll risk large losses for higher gains’.
OFF3R’s Comment on Platform
Since launching in 2011, Nutmeg has become the UK’s largest robo-advisor in terms of assets under management*. In 2017, they became one of only three providers to offer the new Lifetime ISA, expanding on their current offering of the Stocks and Shares ISA, Personal Pension and General Investment Accounts. For investors who understand the importance of controlling costs but with limited time and expertise to make their own investment choices they provide a well established and well used option.
*Source: uk.businessinsider.com/nutmeg-review The Robo-Advising Report, May 2016.
General Investment Account
A choice of either a fully managed or fixed allocation portfolio.
Stocks & Shares ISA
A General Investment Account set up within the ISA wrapper.
A stocks and shares ISA eligible for a 25% government top-up towards your first home or retirement.
An easy to set up and accessible pension plan plus an instant 25% government top-up on regular personal net contributions.
|Type of investment?||Diversified investment in assets including stocks and bonds, with 10 different risk settings.|
|What is the minimum investment?||General Investment Account & ISAs – £500
Pension – £5,000
|How much are the fees?||Annual managements fees range from 0.25% – 0.75% (per annum) depending on the amount you invest and whether you choose a fully—managed or fixed allocation investment style. You also pay the built in fee in the ETFs Nutmeg trade, these currently average 0.19% (per annum) on invested money.|
|Investment instruments?||Exchange Traded Funds (ETFs)|
|How is the investment secured?||Nutmeg use State Street as their custodian bank. This means that investments are protected if either Nutmeg or State Street should be declared bankrupt.|
|Personalised investment portfolios?||No – model portfolios only.|
|Is early exit possible?||Yes, you can withdraw from your general investment account or ISA at anytime without fees. You can transfer your pension to another provider, but you can’t normally withdraw from a personal pension until you’re 55.|
Platform Registration and Investment Process
Please open the image gallery for a walkthrough of the nutmeg investment process. Each stage of the investment process has also been detailed below.
Stage 1 – Registration Process
To register with Nutmeg you are simply required to enter your email. Following this you will be given the option to select your investment product. Once you have decided you then select your investment timeframe, your initial investment amount and your monthly contribution amount (this can be changed at anytime). Based on your investment style, whether you opt for a fully-managed or fixed-allocation portfolio, you then choose your risk level.
Stage 2 – Making an Investment
After registering and completing the risk assessment, you can add funds to your account in order to commit to your initial investment. This can be done via bank transfer or debit card. From your online account you can make additional top-up contributions on a monthly basis.
Stage 3 – Managing your Investment
You can view your investment dashboard at anytime when you login to your Nutmeg account. Here you will be able to view an overview of your portfolio, including the projected performance, as well as past historical performance of returns on comparable accounts. You are able to adjust your investment timeframe, style, risk-level and monthly contributions from here.
Stage 4 – Exiting your Investment
You are free to withdraw some or all of your money at anytime from your Nutmeg ISA or general investment account without any fees. You can also transfer your ISA or pension to another provider, however as with any personal pension you cannot normally withdraw money until you’re 55. It can take between 3-6 days for your withdrawn money to reach your bank account.
Watch the following video for more information on the Nutmeg investor journey:
Please visit Nutmeg for more information on their investment opportunities. Your Capital is At Risk.
By making an investment, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. The tax treatment of an ISA depends on your individual circumstances and may be subject to change in the future. OFF3R Limited is an appointed representative of Kession Capital Limited (FRN:582160) which is authorised and regulated by the Financial Conduct Authority in the UK.