Want to invest, but don’t know where to start? Nutmeg is an easy introduction.
Founded in 2011, Nutmeg is an online investment management company based in London.
It aims to make investments more accessible and has over 60,000 customers in the UK.
What is Nutmeg?
Its team aims to learn about you and find the right investments on your behalf, build your portfolio and make it easily accessible for you to check on your progress.
How does Nutmeg work?
Nutmeg is set up as a low-cost, high-quality investment platform, which trades in bulk to keep fees down. It buys and sells customers’ investments at the same time, which allows them to match buyers and sellers internally.
It prefers to invest in exchange-traded funds (ETFs) because they’re easy to trade and low cost, with its team aiming to track the movement of market indices with a high degree of accuracy.
If you become a Nutmeg general investment customer, you can manage your portfolio online through the website or an app.
How I apply for a Nutmeg General Investment Account?
First, you must fulfil their general criteria of having a UK bank account, be over 18 and be a resident of one of Nutmeg’s accepted countries.
It takes around 10 minutes to set up an account on Nutmeg’s website. Along with some personal details, you’ll be asked about your goals, how much you’d like to invest and your timeframe to cash in.
Taking this into consideration, you can choose between two investment styles – either a fully managed portfolio or a fixed allocation portfolio.
- Fully managed portfolio: This is proactively managed by the Nutmeg investment team, who regularly make strategic adjustments to try and protect against losses and boost returns.
- Fixed allocation portfolio: Designed to perform without intervention. The team will invest in assets which match your risk level, reviewing these annually to make sure they’re performing the best for you.
You should have a minimum balance of £500 and invest at least £100 a month, setting up a direct debit to transfer funds to your Nutmeg account.
Your fees will depend on how much you invest and your chosen investment style.
For investments, the fees are:
- Fully managed portfolios – 0.75% on balances up to £100,000, 0.35% on balances over £100,000.
- Fixed allocation portfolios – 0.45% on balances up to £100,000, 0.25% on balances over £100,000.
You will also have to pay smaller fees of an investment fund cost and the average effect of market spread.
Pros and Cons
- Access to your portfolio 24/7 online.
- No hidden fees.
- Customer service: Live chat, telephone and email.
- Flexible: You can withdraw your money at any time for free.
- Refer-a-friend bonus: You could receive £25 if your friend invests, while they can have the first three months of investing fee-free.
- No corporate or trust accounts.
- Less control over investments: If you want to choose what you invest in, you’re better off managing your own portfolio yourself.
- Minimum investment: You must invest with at least £500 and commit to £100 a month. If you want to start smaller, it’s worth looking elsewhere.
Is Nutmeg safe?
Nutmeg is a secure company and currently has over 60,000 customers in the UK.
It is regulated by the Financial Conduct Authority (FCA), which means you could be entitled to compensation if Nutmeg cannot meet its financial obligations.