Nutmeg: In review
What is it?
Nutmeg is an investing platform which lets you choose a risk level you are comfortable with. You can then invest your cash into one of their various products which are available. Your money is then invested into a range of ETFs which have been hand-picked by Nutmeg.
How it works:
You can opt for a fixed allocation portfolio or a fully managed portfolio. The fully managed one will automatically adjust your portfolio for you to meet changes in market conditions. This is done by a system referred to as robo-investing which means a computer runs your investment portfolio for you. This is a really interesting feature which has shown good results in recent years as shown here.
Nutmeg have also introduced a socially responsible fund which you can invest in. This can take the guilt out of investing in companies which are harming the environment whilst allowing you to hold a strong, managed investment portfolio.
As you get your portfolio built for you, they do charge a fee which is a flat rate until you have over £100k invested and then this will decrease from 0.45% to 0.25% (fixed allocation) or from 0.75% to 0.45% (fully managed) for any amounts over the £100k threshold.
However, you can use our link here* to open an account with Nutmeg (S&S ISA, General Investment Account, Pension or Lifetime ISA) and receive no fees for 6 months. On an investment of £20,000 this would be a saving of £75.
Please note this is only available to new customers who invest £500+ and keep their account open for at least 12 months.
My experience
Personally, I have used Nutmeg for my 20/21 Stocks & Shares ISA and chose the risk level 8/10. I opened the account with the minimum amount and have been making regular contributions throughout the tax year.
You can set up recurring monthly deposits or top up your account at any point, this cash takes ~3 days to clear and is then invested in the next investment day (Currently Mondays and Thursdays.)
It is simple to see what ETFs are bought or sold on any given day, to see fees charged and dividends received within the portfolio. You can also download all of this information as an Excel document if needed. I find the visual charts which show performance against contributions, and the allocation of your funds by fund, sector or country particularly useful.
My results
I have been invested in this account for about 13 months now and the returns are far better than I could have ever imagined. Even considering the heavy market downturn since mid-February, my investment pot is up 6.51% (previous high of 11.14%)
Of course, this is completely dependant on when my contributions were made, how much I put in and my risk level, but I am really pleased with these results.
Always do your own research and shop around before choosing an investment platform, but if you are interested in opening a Nutmeg account you can support The Bank Engine by opening an account through the link below:
https://nutmeg.mention-me.com/m/ol/hp5hw-thomas-sexon *
Useful links:
Other investing platforms:
Trading212 - free share available!
Freetrade - free share available!
*The Bank Engine may receive a commission if you sign up to Nutmeg through our links listed above. All commissions are re-invested into the running of the website and our social media accounts. If you have any questions on anything mentioned here, please drop us an email.