• ACCOUNT MINIMUM: £100 (Lifetime ISA) to £500 (General Investment Account, Pension Plan, ISA)
  • ACCOUNT TYPES: Individual Savings Accounts (ISAs), Pension Accounts, GIAs
  • ASSETS UNDER MANAGEMENT: £3.5 billion under management
  • FEE RANGE: 0.25% - 0.75%
  • INVESTMENT STYLES: Fixed Allocation, Fully Managed, Socially Responsible, Smart Alpha Portfolios
  • RISK LEVELS: 1-10 for Fully Managed and Socially Responsible, 1-5 for Fixed Allocation and Smart Alpha Portfolios
  • CUSTOMER SUPPORT: Phone, Live Chat, Mail, Nutmail

minimum price:

£100 investment

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Nutmeg Review

Are you ready to start investing towards a better future, but want to make the process as hassle-free as possible? Then Nutmeg might be ideal for you. Check out this Nutmeg Review if you want to know more.

Nutmeg Review

minimum price:

£100 investment

Visit Website
  • ACCOUNT MINIMUM: £100 (Lifetime ISA) to £500 (General Investment Account, Pension Plan, ISA)
  • ACCOUNT TYPES: Individual Savings Accounts (ISAs), Pension Accounts, GIAs
  • ASSETS UNDER MANAGEMENT: £3.5 billion under management
  • FEE RANGE: 0.25% - 0.75%
  • INVESTMENT STYLES: Fixed Allocation, Fully Managed, Socially Responsible, Smart Alpha Portfolios
  • RISK LEVELS: 1-10 for Fully Managed and Socially Responsible, 1-5 for Fixed Allocation and Smart Alpha Portfolios
  • CUSTOMER SUPPORT: Phone, Live Chat, Mail, Nutmail

Best For

First-time investors

STRENGTHS

  • Transparent fee structure
  • Large portfolio selection
  • Quick set-up
  • Easy to use
  • Different risk levels

WEAKNESSES

  • Higher fees than competitors
  • No fee relief for accounts over £1 million

Technology has brought about a new era in the world of investments, and the process of buying and sharing stocks is now easier than ever. As a result, online wealth managers have seen rapid growth in recent years. 

Investors can now manage their wealth and at the same time obtain financial advice through a computer screen anytime, anywhere. By combining the elements of a robo-advisor platform and a traditional stockbroker, Nutmeg has become a true leader among online investors in the UK. 

In this Nutmeg Review, we will perform a detailed analysis of Nutmeg’s charges and performance and, in the process, help you establish whether it is a suitable solution for you. Here are the topics we will cover:

 

  • What is Nutmeg?
  • Who is Nutmeg For?
  • Nutmeg Products
  • Nutmeg Portfolio Options
  • Nutmeg Charges and Fees
  • How to open a Nutmeg account?
  • Customer Service
  • Nutmeg Competitors
  • Customer Reviews

What is Nutmeg?

Nutmeg Investment is a London based online investment management service founded by Nick Hungerford in 2011. As an independent company, it is owned by several shareholders, including Taipei Fubon Commercial Bank, Pentech Ventures, and Schroders.

Throughout its operation, Nutmeg has received multiple awards and even an endorsement from the UK government. Nutmeg is also the UK’s longest-running and largest digital wealth manager, with over 130,000 active customers and, as of 2021,  £3.5 billion assets under investment management. 

Several factors contribute to Nutmeg’s success and longevity, and we will cover all of them in this Nutmeg Review

But first, let’s see who this company caters to.

Nutmeg Investment | CyberCrew

Who is Nutmeg Investments For?

  • Nutmeg requires a minimum investment of £500 (£100 for the Junior and Lifetime ISA), which rules out anyone looking for a lower account minimum.
  • Nutmeg offers a Personal Financial Advice service. That means it is an ideal investment app for beginners striving to gain more confidence in their financial decisions. 
  • Nutmeg is a robo-advisor platform. That means it is well suited for investors who prefer a hands-off approach and lack the time and expertise to make their own investment decisions.
  • Nutmeg’s performance data analysis suggests that it is most suitable for those prepared to take a medium level of investment risk
  • Nutmeg is a transparent service, meaning it is perfect for those who want to see exactly how their investments are performing from any device and at any time.
  • Finally, Nutmeg is a service intended primarily for UK residents. However, customers residing within the European Economic Area may also be eligible for General Investments Accounts only.

Nutmeg Products

By opening a Nutmeg account, you can invest in the following products:

  • Stocks and Shares ISA
  • Stocks and Shares Lifetime ISA
  • Stocks and Shares Junior ISA
  • Pensions
  • General Investment Account (GIA)

Let’s take a brief look at each one of them. 

Stocks and Shares ISA

The Nutmeg Stocks and Shares ISA is a tax-efficient account type that allows you to invest in various funds, bonds, and shares on up to £20,000 worth of deposits each year.  All the money earned through a Stocks and Shares ISA is tax-free.

A Nutmeg ISA account has a minimum investment requirement of £500 and several perks that make Nutmeg one of the best managed Stocks and Shares ISA providers. Here are some of them.

  • Transparency – You have  24/7 access to your account, where you can see where your money is invested and how it’s performing at any given time.
  • You can easily change the investment style and risk tolerance through your account.
  • There are no exit, set-up, or transfer fees.

Stocks and Shares Lifetime ISA

The Nutmeg Lifetime ISA is a great way to earn tax-free interest on an investment that you can use towards a future home or a retirement. With a Nutmeg LISA account, you can save a maximum of £4000 each tax year, which comes out of your annual £20,000 ISA allowance.

In addition, the government will give you a 25% bonus, which can reach a maximum of £1000 each year. So anyone aged between 18-39 years can start a Nutmeg LISA account for a minimum investment of only £100.

Personal Pensions

A personal pension is a tax-efficient way of saving towards retirement. It requires a minimum investment of £500 and also comes with a 25% government bonus. You can easily start a new Nutmeg pension or transfer an old one without set-up or transfer fees.

Stocks and Shares Junior ISA

The Nutmeg Junior ISA is a tax-free individual saving account set up by a parent or guardian of a child under 18. The money is only accessible by the child once they have turned 18. 

The Nutmeg Junior ISA requires a minimum investment of only £100. As with all other Nutmeg accounts, the Junior ISA has no set-up, exit or transfer fees. Also, you are free to change the risk level and investment style anytime. 

General Investment Account

The General Investment Account will allow you to invest money outside tax wrappers, such as pensions or ISAs. The GIA comes with no tax benefits, and there is no limit on how much you can invest. As a result, these types of accounts are ideal for those who have maxed out their ISA allowance and have more to invest. 

The Nutmeg minimum investment required for starting a GIA is £500. The Nutmeg GIAs are highly transparent, with 24/7 account access, simple and designed by experts. 

 

Nutmeg Portfolio Options

There are four Nutmeg investment portfolios to choose between. They are all globally diversified and designed by experts. 

Fully Managed Portfolio 

If you opt for a Fully Managed Portfolio, Nutmeg’s team of investment experts will manage all your funds for you and make strategic tweaks to the investments based on news, data, and analysis. In addition, they will decide which EFTs to invest in and make adjustments to reflect the economic environment.

Furthermore, you as a user will be able to choose from 10 risk levels – low to high – and have full access to your funds at any given time. 

Smart Alpha

The Smart Alpha Portfolio is Nutmeg’s latest release, launched in November 2020. It combines Nutmeg’s fundamental investment principles and the market insights and expertise of one of the leading investment houses worldwide – J.P. Morgan Asset Management

These portfolios are not available for personal pensions but are accessible through the ISA and General Investment Account types. 

J.P Morgan’s investment strategy aims to give customers additional returns through smart security selection and with no additional risk. Furthermore, the Smart Alpha portfolio comes with five risk levels to reflect customers’ risk appetite. 

Fixed Allocation Portfolio

The Fixed Allocation portfolio is globally diversified and designed by experts but comes with automated rebalancing. As a result of removing the cost of proactive management, this is Nutmeg’s most affordable portfolio. 

It is similar to the fully managed portfolios in one way. Experts choose which investments to put your money into. Still, any changes made to the investment are controlled by technology – robots instead of humans. 

The Fixed Allocation Portfolio also comes with five risk levels to choose from. 

Socially Responsible Portfolios

Nutmeg’s Socially Responsible Portfolios are also globally diversified and proactively managed by experts. Still, they come with one additional perk, an ESG focus. The Socially Responsible Portfolios are unique because they give customers the chance to align their investments with their moral values.

The portfolios exclude stocks that profit from tobacco sales, fossil fuels, or controversial weapons, focusing instead on companies with good environmental, social, and governance credentials.

Moreover, customers can choose from 10 risk levels. As a result of all these perks,  the Socially Responsible Portfolio is Nutmeg’s top-tier product. 

Risk Levels

The risk levels vary between low and cautious or high and aggressive on a scale of 1-10 and are entirely up to you. Typically, the higher the risk is, the higher reward you can expect. But, naturally, that doesn’t mean that you will get a higher return all the time. 

When you first sign up to the platform, Nutmeg will establish your risk level based on a series of questions, but it is possible to readjust it at a later date. 

Nutmeg Fees and Charges

Nutmeg fees depend primarily on the portfolio type you choose and the amount of your overall investment. In the table below, you can see a breakdown of Nutmeg’s fees and charges. 

 

Fully Managed Smart Alpha Socially Responsible Fixed Allocation
Up to £100 000 0.75% 0.75% 0.75% 0.45%
Over £100 000 0.35% 0.35% 0.35% 0.25%
Fund Costs +Average investment fund cost: 0.22% +Average investment fund cost: 0.14% +Average investment fund cost: 0.29% +Average investment fund cost: 0.19%
Market Spread +Average market spread: 0.08%  +Average market spread: 0.08% +Average market spread: 0.08% +Average market spread: 0.08%

 

Although it is standard among investment providers to cease charging management fees once the investment reaches the £1 million threshold, Nutmeg doesn’t provide such relief. 

Still, it is worth noting that with Nutmeg, you will pay no set-up, trading, transaction, or exit fees. 

Nutmeg also provides its customers with several tools for managing their finances. We will briefly mention each one of them. 

The Self Employed Tax Calculator estimates income and national insurance tax for employed or self-employed customers based on their annual gross salary, self-employment income and expenses, and pension contributions. 

The Compound Returns Calculator estimates compound returns based on return rate period, timeframe, and compounding rate frequencies, daily, monthly or yearly.

The ISA Calculator indicates the time it will take to reach your investment goal and how much you’ll need to invest monthly. These calculations are based on the starting amount, monthly contributions, and risk level. 

The Pension Calculator gives customers an estimate of the time it will take to reach their retirement goal.  It also calculates how much they will need to invest each month to achieve that goal. 

How to Open a Nutmeg Account?

The Nutmeg onboarding process is smooth, straightforward, and well-constructed. 

On sign-up, you will be prompted to enter your personal info, as well as bank and tax residency details. After that, Nutmeg will verify your identity, which is a process that can take up to a few days.

Once the identity verification process is complete, you will have to fill out a brief questionnaire. In this way, Nutmeg will assess your risk/reward tolerance, investing experience, goals, and initial and recurring deposit levels. 

Nutmeg will estimate your risk tolerance level based on the answers you’ve provided. Still, if you’re not comfortable with the assessment, you can retake the questionnaire and make some adjustments. 

Once your risk level has been established, you will need to choose your account type from several options: Junior ISA, General Investment, Stocks and Shares ISA, Stocks and Shares Lifetime ISA, and Personal Pension

The Junior ISA and Lifetime ISA require a minimum initial investment of £100. At the same time, that rate goes up to £500 for all other account types. 

Next, you will need to pick an investment style from the four tiers: Fixed Allocation, Fully Managed, Socially Responsible, and Smart Alpha. Nutmeg’s final onboarding page contains a simple slider where you can confirm or readjust your risk tolerance level. Finally, the system will output a graph with a projected outcome on investments. 

Overall, opening a Nutmeg account is a straightforward process that shouldn’t take up much of your time, especially if you are already familiar with all the options and investment styles. 

How to Transfer Your Investments to Nutmeg

Moving an ISA from another investment provider to Nutmeg is simple, and you can do it as part of the set-up process for your Nutmeg account. All it takes to initiate the transfer is to provide details of your current investment account. 

You can transfer an unlimited number of ISAs. The process can take from two to four weeks, all depending on your current provider. Nutmeg will notify you by mail when the transfer is complete. 

It is worth noting that Nutmeg doesn’t cover any of the fees the transfer may include. All exit fees from your current investment provider are entirely your responsibility. 

 

How to Withdraw Money from Nutmeg?

You can withdraw money from your Nutmeg account to a nominated bank account at any given time by making a withdrawal request. You can find the Withdrawal option under Payments within your Nutmeg dashboard. The withdrawal process typically lasts 3-7 business days. 

Nutmeg doesn’t charge any withdrawal fees, but withdrawing from a Lifetime ISA comes with a government penalty of 25% on the total sum withdrawn. 

Customer Service

Getting in touch with the Nutmeg customer support team is easy as there are several support options available. 

The Live Chat and  Phone Support options are available from Monday to Thursday 9 am – 5:30 pm, Friday 9 am – 4:30 pm. Customers can also reach a Nutmeg representative via email. 

In addition, current customers can contact a representative via Nutmail. This secure inbox tool can be accessed through the Nutmeg account dashboard. Nutmail is mainly used for questions that contain account-specific information. 

New and prospective clients can use the callback feature and choose an appointment time for a Nutmeg representative to call them or even book a meeting at Nutmeg’s London office.

Nutmeg Competitors

In this segment of the Nutmeg Review, we will see how it measures up to some other digital investment solutions.

Nutmeg vs Moneyfarm

Moneyfarm is one of the largest investment management companies in Europe, with over £1 billion in investment assets and 50,000 active users. As such, it is a direct rival to Nutmeg. So let’s see how the two of them compare in terms of products, investment portfolios, and fees. 

Products – Moneyfarm allows you to invest in three products, general investment accounts, pension accounts, and stocks and shares ISAs. All of these products require a minimum investment of  £5000. 

In contrast, you can invest in two more products with Nutmeg – lifetime ISAs, and Junior ISAs. The Lifetime and Junior ISAs allow you to start investing from as little as £100. At the same time, the other products require a minimum of £500. So, in terms of products, Nutmeg is both cheaper and more diverse than Moneyfarm.

Investment Portfolios – When it comes to portfolios, Moneyfarm offers a similar approach to Nutmeg. It provides you with a brief questionnaire and suggests a portfolio based on your answers. In total, there are seven managed portfolio options available. 

Nutmeg offers much more – 30 portfolios with 5 or 10 risk profiles to choose from, and you can select a portfolio based on its risk description. 

Fees. Moneyfarm’s fees are structured a little differently than Nutmeg’s. Your options are below.

  • 0.75% fee on the first £10,000
  • 0.60% fee between £10,000 and £50,000
  • 0.5% fee between £50,000 and £90,000
  • 0.35% on anything above £100,000

In contrast, Nutmeg’s Fully managed portfolio comes with an annual fee of 0.75% for up to £100,000 and 0.35% on any sum beyond that.

Nutmeg vs Wealthify

Nutmeg and Welthify are among the most popular robo-advisor platforms in the UK. But which one prevails?

Products – Similarly to Nutmeg, Wealthify offers investment products in tax-efficient wrappers. With Wealthify, you can invest in ISAs, Junior ISAs, Pension Pots, and General Investment Accounts. Contrastly, Nutmeg provides one more option, a Lifetime ISA.

Wealthify offers a much lower investment minimum than Nutmeg. For example, you can start an ISA, GIA, or Junior ISA account for as little as £1, and a Pension Pot for only £50.

Investment Portfolios Wealthify provides two investment styles – Original and Ethical. Each comes with five different risk profiles, from Cautious to Adventurous. In contrast, Nutmeg offers up to ten risk profiles to choose between, ranging from cautious to aggressive.

The Ethical plans are similar to Nutmeg’s Socially Responsible Portfolios. They aim to avoid funds related to harmful environmental activities, focusing instead on socially and environmentally responsible companies. 

Fees – Wealthify has a straightforward fee structure. They charge a straight fee of 0.60%, independently of the amount invested. Nutmeg takes an entirely different approach, with the fee rate dropping significantly after the £100,000 threshold, from 0.75% to 0.35%

Customer Reviews

On Trustpilot, Nutmeg has a 4.3 out of 5 stars rating out of 1000+ customer reviews, suggesting that people are generally pleased with this investment provider. Additionally, 74% of the reviewers gave Nutmeg a 5-star rating and recommended its services. 

Most of the positive Nutmeg reviews praise its fee structure transparency, easy to use and intuitive dashboard, polite and knowledgeable support team, and excellent rate of returns. 

As with any other product or service, however, there are some dissatisfied customers as well. Some of them found the Nutmeg app unintuitive and difficult to use. Others experienced difficulty transferring their account and withdrawing money and found the process too lengthy. 

Nutmeg User Reviews | CyberCrew

Nutmeg User Reviews | CyberCrew

Wrap Up

Given all the features and services we’ve covered in this Nutmeg Review, it is easy to see why many people consider Nutmeg the best robo-advisor UK platform. 

So, if you think it’s time to start putting some money aside for rainy days, Nutmeg is one of our top recommendations.

FAQ

What is Nutmeg?

Nutmeg is a managed investment platform based in London.

Is Nutmeg any good?

Yes, Nutmeg is an excellent investment platform that has received multiple awards over the years, as well as an endorsement from the UK government. 

Is Nutmeg good for beginners?

Yes, Nutmeg offers an easy-to-use and intuitive dashboard and financial guidance and advice, which means it is well suited for beginners. 

Who can invest in Nutmeg?

As a low-cost online investment platform, Nutmeg gives virtually anyone the chance to invest and start using its services.

Can I buy shares with Nutmeg?

Yes, you can start a Stocks and Shares ISA or transfer already existing Stocks and Shares ISAs to Nutmeg.

How secure is Nutmeg?

Nutmeg is a secure investment platform that follows all UK regulations and has been authorised to operate by the Financial Conduct Authority.

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