Nutmeg Review: Add a little spice to your investments (2024)

Nutmeg Customer Reviews

Expert Nutmeg Review

Approved by Nutmeg on the 11 September 2023

Because Nutmeg is no longer a disruptive start-up and is now owned by a massive financial institution with a compliance department larger than the investment team (maybe, I haven’t checked) every word we write needs to be approved by them before we publish it. Thankfully, Nutmeg is a long-term investment platform and nothing really changes much other than the odd bit of portfolio allocation. On the plus side though the FCA has not insisted on customer reviews being approved by a regulated person yet, so do us a favour and tell other people what you like or dislike about Nutmeg in the customer reviews section.

It’s pretty hard to write a review of Nutmeg, becuase, you probably already know what they do and you know they do it well because we awarded them “best robo-advisor” and “best private pension” in our 2023 awards. So I haven’t, I’ve taken poetic inspiration from a digital source and improved it. Just like how Nutmeg is a robo-advisor, but is actually a digital wealth manager run by humans who use automation to streamline the process. I’ve followed Nutmeg since it’s inception, when it blew the cobwebs away from the fuddy-duddy wealth management industry and along with Wise can be credited as being one of the most influential and disruptive companies to help make finance more accessible over the last two decades. I never got the chance to interview Nutmeg’s founder, Nick (as I haveinterviewedmost other investment platform CEO’s and founders), who sadly died after Nutmeg was acquired by J.P Morgan for $700m in 2022, he was 43, I’m 43.

If you want to know if you should invest with Nutmeg, my answer is an invariable yes, because the sooner you start investing the harder your money will work for you. If you need more convincing, it’s not just me that thinks so, evenJohn Lewis Financehas entrusted them with the trust of their customers…

Capital at risk. Tax treatment depends on your individual circ*mstances and may change in the future.

Ode to Nutmeg

Oh Nutmeg, a pioneering robo-advisor so bold,
With algorithms and clever humans untold.
In the realm of finance, they’ve carved a way,
To guide investors through the stockmarket’s sway.

With prudence and precision, their portfolios dance,
Crafting alpha and beta with mathematical romance.
They seek diversification, the investor’s golden art,
To shield your wealth, your retirement, so start.

It’s a robo-army, an army of digital wealth,
They work day and night, with unyielding stealth.
Analyzing data, scanning the trends,
In the vast sea of investments, making regular amends.

Oh, Nutmeg, this conductor of your fiscal fate,
Trust in their prowess, and they will guide you straight.
Through bull and bear markets, they’ve seen it all,
Shielding your portfolios from potential downfall.

With a sprinkle of risk, and a dash of return,
They balance the scales, making your money earn.
Rebalancing deftly, with nimble grace,
They keep you on track, in this financial race.

Oh, Nutmeg, the compass of our financial quest,
The fees are fair, sometimes less than the rest.
Low-cost and transparent, keeping costs tight,
With no hidden exit fees, management fees are light.

An intuitive platform, a user’s delight,
Bringing simplicity with strict compliance oversight.
From novices to veterans, they make investing a cinch,
Making investing accessible, not just for the rich.

Oh, Nutmeg, the robo advisor of our dreams,
You’ve revolutionised investing it seems.
With Hungerford’s influence in your hearts,
We commend your service, and thanks for playing your part.

Nutmeg Awards

1. Best robo-advisor 2023
2. Best private pension 2023
3. Best lifetime ISA 2022

Nutmeg Facts & Figures

Should you go for a Nutmeg ISA or GIA?

If you have already opened an ISA this year and used your allowance you should open a Nutmeg GIA. But, if you don’t already have one a ISA should be your first investing account as you do not have to pay capital gains tax on the first £20k you invest in it each year.

• Investments:Pre-made portfolios
• Minimum deposit:£500
• Account types:GIA, ISA, Pension, JISA, LISA
• Management fee: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%. More information on fees and products can be found here.

What is Nutmeg’s Lifetime Stocks & Shares ISA?

Under 40, struggling to save as much as you need? If so, Nutmeg’s lifetime stocks and shares ISA may just be the solution you’ve been looking for. Since the Government launched the Lifetime ISA in 2017, a growing number of investment firms have been getting in on the act. One of these is Nutmeg who clearly see this as a chance to offer a financial product tailored to the needs of millennials.

• Want to see the best Lifetime ISA accounts? Compare Lifetime ISAs here.

Lifetime ISAs were launched to address the savings gap among millennials. This generation, which hit financial independence in the midst of the 2008 recession, has found it tough to put aside substantial sums for retirement. Stagnant wages combined with a high cost of living mean getting onto the housing ladder remains a pipedream for many.

As for saving for retirement? Forget it. A study from the FCA found that 15 million people aren’t saving for retirement. Even those who are, often aren’t saving enough. Lifetime ISAs are the Government’s way of changing the story.

Who can invest in Nutmeg’s Lifetime Stocks & Shares ISA?

Nutmeg’s lifetime ISA is open to anyone over the age of 40 and allows you to save up to £4,000 per year without paying tax on any future returns up to the age of 50. For every £4 you invest, the Government will top it up with a £1 bonus up to a maximum of £1,000. That’s potentially a huge amount of free government money every year.

Interest is gathering pace with a number of other providers including Hargreaves Lansdown, AJ Bell and Newcastle Building Society also offering their own products. However, investing in an ISA is not without its risks and returns can fall as well as rise.

What does Nutmeg Invest in?

Nutmeg Investment’s approach is to invest in Exchange Traded Funds (ETFs). These are more transparent and offer a lower cost and adopt a more conservative approach of tracking the market rather than trying to beat it. With no hidden fees, their approach is to be seen as offering the best value for money on the market.

Setting up is relatively easy. All you have to do is pay in a sum of between £100 and £4,000 to get started. For those who had given up hope of being able to save enough to get on the property ladder or retire comfortably, therefore, this does offer an attractive option. As with anything, though, it pays to check the terms and to make sure this is the best option for your circ*mstances.

• Compare Nutmeg to other stocks and share ISA accounts here

We rate Nutmeg’s Lifetime ISA as very good as it is a simple and low-cost way to invest in managed portfolios and take advantage of the government’s 25% top-up bonus.

• Investments:Pre-made portfolios
• Minimum deposit:£100
• LISA management fees: 0.45% – 0.75%
• LISA share charges:n/a

LISA Fees: A Lifetime ISA with Nutmeg costs 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 addition charged by the investment fund managers of around 0.2% and the market spread on buying and selling portfolios is on average 0.07%.

• For more information read our expert Nutmeg review

Owned by JP Morgan, Nutmeg won the “Best Lifetime ISA” category in our 2022 award, offering one of the simplest low cost LISAs with a range of low, medium and high-risk options.<

What is the Nutmeg app used for and is it any good?

You can use Nutmeg’s app to invest in a GIA, ISA or pension and track the performance of your portfolios. However, you will be able to do more research and find more information to get a better understanding of the risk and products if you use Nutmeg on a laptop or desktop computer.

Is Nutmeg good for Junior ISA investing?

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’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.

Nutmeg Thematic Portfolios

In October 2023 Nutmeg added a new thematic portfolio style to its range of products.

The new Thematic Portfolios, from the investment manager, will allow Nutmeg clients to put their money directly into the trends and themes that will shape our future.

Nutmeg will offer investors access to portfolios encompassing three broad-brush themes, which are, Technological Innovation, Resource Transformation and the Evolving Consumer.

These new thematic portfolios are designed as long-term investing strategies, that will invest in companies that are likely to benefit from trends, such as the growth and adoption of artificial intelligence, the transformation to renewable energy sources, and away from fossil fuels and the changing demographics of our populations.

Thematic Portfolios Selection

Nutmeg will use its research and technological capabilities to select and manage the underlying investments, in these thematic portfolios. While at the same time diversifying their exposure and avoiding risk concentration.

Clients that open a thematic portfolio will see their investments “tilted” towards the theme of their choice, the tilt will be as large as 20% of their portfolio’s equity exposure.

The portfolio will be actively managed by Nutmeg on the client’s behalf, and subject to an annual review.

Added Risk

Will all Nutmeg clients be able to access the Thematic Portfolios?

No, the new Thematic Portfolios won’t be available to all Nutmeg customers. Only those who are comfortable with the firm’s risk level 5 will be able to invest in thematic funds.

Thanks to their high level of equity exposure, low level of bond exposure, and the FX risk involved in investing overseas markets, and in particular in the US Dollar.

Nutmeg’s lower risk-rated portfolios, which run from 1 to 4, typically have higher rates of bond ownership and seek to minimise the FX exposure in their portfolios.

The new Thematic Portfolios are available for ISA and Junior ISA holders, with a minimum investment of £500 and £100 respectively and Nutmeg will charge 0.75% per annum management fee.

Interestingly the new portfolios won’t incorporate any ESG considerations, though it’s very likely there will be some crossover, given the nature of the broad brush themes themselves.

Nutmeg’s new Thematic Portfolios seem like a good way to gain diversified exposure to trends, that will undoubtedly play a big part in all our futures.

Retail investors, who can accept higher rates of equity exposure, may well prefer to use Nutmeg’s investment and money management expertise, to build and run their portfolios for them.

Rather than adopting a DIY approach, using their own ETF and stock selections, and to be honest fees of 0.75% per annum don’t sound exorbitant for a discretionarily managed service.

Is Nutmeg good for ISA investing?

Yes, I think that Nutmeg has transformed the way people invest in ISAs for good. Nutmeg were the first provider to make investing in a stocks and shares ISA easy online and remain one of the best ways to put your money to work in a tax-free wrapper.

Nutmeg offers off-the-shelf portfolios across its ISA range to suit five different investment styles. Investors can choose between four different portfolios, including fully managed, Smart Alpha powered by J.P.Morgan Asset Management, socially responsible and fixed allocation.

Yes, Nutmeg’s ISA lets you invest in pre-made portfolios with a minimum deposit as low as £500 with discounted account fees of 0.45%

Fees: Nutmeg charge 0.75% for their managed ISA portfolios which drops to 0.35% for balances over £100k. For their fixed allocation ISA 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%.

More information on products and charges can be foundhere.

Is Nutmeg’s pension any good?

Yes, it is safe to invest in a pension with Nutmeg as they are regulated by the FCA an owned by J.P. Morgan (one of the largest banks in the world). However, there is risk with all investing and all pensions are linked to the stock market so there is a risk that at some point your investments could be worth less than when you started.

Nutmeg has created five pension styles (portfolios) which have been built by experts and use exchange-traded funds to diversify across stocks, bonds, industries, and countries. This also importantly keeps costs down.

Nutmeg pensions cost 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%. More information on fees and products can be found here.

Capital at risk. Tax treatment depends on your individual circ*mstances and may change in the future.