Nutmeg Review

Nutmeg Review

Nutmeg allows you to invest in a variety of funds via a Stocks and Shares ISA, Lifetime ISA, Junior ISA, GIA, or Personal Pension. Formal financial advice is also available.

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Updated On:
July 14, 2021

How does Nutmeg work?

Nutmeg is a UK robo advisor that allows you to invest in various funds based on your risk preference. It has four investment portfolios to choose from - Fixed Allocation, Fully Managed, Smart Alpha, and Socially Responsible. 


When you invest, please remember that your capital is at risk.


How do I invest with Nutmeg?

With Nutmeg, you can invest through one or more of the following products - Stocks and Shares ISA, Lifetime ISA, Junior ISA, General Investment Account, and Personal Pension. Formal financial advice is also available. 


Once you decide what product you want to go with, you need to pick an investment portfolio. Here's a breakdown of how they work:


Fixed Allocation Portfolio (Cheapest):‍

This is a passively managed investment portfolio. It keeps you invested in assets that match your risk level, and Nutmeg only reviews those assets once a year to make sure they're still right for you.


Fully Managed Portfolio:‍

This is an actively managed portfolio. An active portfolio means Nutmeg will regularly make strategic adjustments to try and protect against losses and boost returns. Active portfolios are usually more expensive than passive portfolios.


Smart Alpha Portfolio:‍

This portfolio is actively managed by J.P. Morgan Asset Management.


Socially Responsible Portfolio:‍

Also an actively managed portfolio, the investments here are tilted towards companies and bond issuers with high environmental, social and governance (ESG) standards. 


What are Nutmeg's fees?

It's completely free to download the app


Then depending on how you choose to invest, the fees are as follows:

To make sense of the charges, use our robo advisor charges comparison table.

Fixed Allocation Portfolio (Cheapest):‍

Platform Fee: 0.45% per year (up to £100,000); 0.25% (£100,000+)

Fund Cost: 0.19% (avg.)

Market Spread: 0.05% (avg.)


Fully Managed Portfolio:‍

Platform Fee: 0.75% per year (up to £100,000); 0.35% (£100,000+)

Fund Cost: 0.19% (avg.)

Market Spread: 0.05% (avg.)


Smart Alpha Portfolio:‍

Platform Fee: 0.75% per year (up to £100,000); 0.35% (£100,000+)

Fund Cost: 0.14% (avg.)

Market Spread: 0.05% (avg.)


Socially Responsible Portfolio:‍

Platform Fee: 0.75% per year (up to £100,000); 0.35% (£100,000+)

Fund Cost: 0.32% (avg.)

Market Spread: 0.05% (avg.)

Are Nutmeg's fees high?

Nutmeg's Fixed Allocation Portfolio is the cheapest of the four portfolios and, overall, one of the cheapest portfolios offered by a robo advisor in the UK. Use our robo advisor charges comparison table to get a sense of how Nutmeg's Fixed Allocation and Fully Managed portfolios compare to other UK robo advisors.


Is Nutmeg good for beginners?

Nutmeg is beginner-friendly. The website is clear and concise, and they have an easy to use app which you can download on iOS or Android. The app allows you to make ad hoc investments or regular payments via direct debits. You can also monitor the performance of your investment and make changes to them when it suits you via the app.


Is Nutmeg a passive investment?

Nutmeg's Fixed Allocation Portfolio adopts a passive investment strategy.


Is Nutmeg safe?

When you invest with Nutmeg, your money is protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000. This means you can get your money back if Nutmeg were to go bust. Note that the FSCS does not cover losses arising from the performance of any of your investments.


Is Nutmeg regulated by the FCA?

Yes, Nutmeg is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at their permissions on the FCA Register.


Does Nutmeg have a referral scheme?

Yes. If you refer friends to Nutmeg, when they invest, they will pay no Nutmeg management fees for six months. Nutmeg will also reward you with a choice of gift vouchers worth £50 - £100. You can choose from Amazon.co.uk, John Lewis and Partners, Prepaid Mastercard, Currys PC World, and Deliveroo.


How do I open an account with Nutmeg?

Visit Nutmeg's website here.


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Alternatives to Nutmeg

Moneyfarm

Moneyfarm offers seven risk-rated investment portfolios. You also benefit from free and personalised digital investment advice from Moneyfarm’s investment consultants. Moneyfarm offers Stocks and Shares ISA, General Investment Account, and Pension.

Visit: Moneyfarm

See: Moneyfarm Review


InvestEngine

InvestEngine is a UK investment platform providing a choice of managed portfolios tailored to you and commission-free DIY investing to help you build long-term wealth. Users can invest in ETFs through a Stocks and Shares ISA, Personal Account or Business Account.


Visit: InvestEngine

See: InvestEngine Review


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