Nutmeg is an online investment management service provider that focuses on straightforward strategies.
They’re popular for their portfolio management, which is great for those who are not familiar with trading and investing yet.
But can experienced investors use Nutmeg as well? I tried this platform to give you a more in-depth review of Nutmeg.
Table of Contents
Introduction to Nutmeg
The London-based company was founded in April 2011 and is listed as Nutmeg Saving and Investment Limited.
It’s one of the hit fintech startups that manage their client’s investment, which means they’ll make the hard decisions and grow your money for you.
In a move to go into retail digital wealth management, JPMorgan acquired the platform in 2021.
According to sources, the firm was valued at 700 million GBP. The platform also won the Best Online Stocks & Shares ISA Provider from 2015 – 2019.
How to Create & Close Your Account at Nutmeg
The platform has a smooth online signup process.
Before you sign-up, make sure you know your goals, desired risk level, and strategy.
Nutmeg asks you to fill out a questionnaire to determine the type of investments that are right for you.
The following accounts are available when using Nutmeg:
- Stocks & Shares ISA, Junior ISA
- Lifetime ISA
- General investment account (GIA)
For Junior ISA and Lifetime ISA, the minimum investment fees are £100, and for Stocks & Shares ISA, Pension, and GIA the minimum investment fees are £500.
You can also transfer your previous investments or other providers into Nutmeg. You’ll fill in the details of your previous account and Nutmeg will arrange the transfer for you within 5 to 30 days. Please be aware that Nutmeg won’t cover the cost of the transfer from your previous provider.
To close your account, you can simply contact their support team via the Nutmail function in your account. You can withdraw your money or transfer the fund to another provider via Nutmeg’s system.
True to their nature of simplified investing, Nutmeg provides a limited option on the products they offer.
You must select the type of account you’d like to invest in first.
Nutmeg offers four managed portfolios to choose from which include the following:
- Socially Responsible: Investment in ETFs that are proactively managed. It has 10 portfolio options with varying risk levels chosen by a team using data points on issues regarding environmental, social, and governance principles.
- Fully Managed: Same principles with Socially Responsible, but more general and not environmentally focused.
- Fixed Allocation Portfolios: Same portfolio diversity as Fully Managed and Socially Responsible, but not proactively managed.
- Smart Alpha Portfolios: Five portfolio options with varying risk levels made in collaboration with JP Morgan Asset Management. The portfolios are created by JP Morgan’s team that provide deep insights into the market condition.
Research Services & Tools on Nutmeg
Since Nutmeg encourages a hands-off approach to investing, they provide only a simplified version of research tools.
Their educational tabs are also focused more on basic knowledge about investing and finance, not advanced knowledge.
If you’re willing to pay £575, you can access adviser packages that include a review of your finances, a discussion of your goals, a review of your existing investment and retirement accounts, retirement planning, and investment and pension advice.
Is Nutmeg Expensive?
The platform has four different schemes for fees which include the following:
- Fixed Allocation: Annual fees of 0.45% for portfolios up to £100k, annual fees of 0.25% for a portfolio valued at more than £100k, and investment fund costs of 0.22% annually.
- Fully Managed: Annual fees of 0.75% for portfolios up to £100k, annual fees of 0.35% for portfolios with values beyond £100k, 0.20% fund provider costs.
- Socially Responsible: Annual fees of 0.75% for portfolios up to £100k, annual fees of 0.35% for portfolios with values beyond £100k, 0.28% fund provider costs.
- Smart Alpha: Annual fees of 0.75% for portfolios up to £100k, annual fees of 0.35% for portfolios with values beyond £100k, and 0.25% fund provider costs.
Nutmeg charges no transaction fee, set-up fee, trading fee, or exit fee.
How to Withdraw From Your Nutmeg Account
If you want to withdraw your money from your Nutmeg account, go to the withdraw option in your account and fill in your bank details.
The process will take 3 – 7 business days because they sell investments on bi-weekly cycles, and you must wait for the process to finish.
Please be aware that there are penalties from the government if you decide to withdraw from your Lifetime ISA.
Safety & Security
Your money will be safe in Nutmeg because they’re regulated by the UK’s Financial Conduct Authority.
That means you’ll also be protected by the Financial Services Compensation Scheme (FSCS). With FSCS, you can gain compensation of up to £85,000 if Nutmeg goes bust.
Customer Support Review
You can contact their customer support via live chat, phone, or the Nutmail function. Alternatively, you can email them at [email protected]. The hours for their phone and live chat services are 09:00 – 17:30 Monday to Thursday and 09:00 – 16:30 on Friday.
To find out more about Nutmeg’s customer support, I decided to check out Trustpilot to see its score. Nutmeg scored an average score of 3.7 out of 5, which means there’s still room for improvement.
Some praised how the team handled complaints, but several customers were disappointed with the low returns on their investments.
Who Should Use Nutmeg?
Looking at Nutmeg’s available products and services, it’s safe to say that Nutmeg is more suitable for those who are interested in a hands-off approach to investing.
But if you want to be more active and control your investments manually, there may be other platforms that are better suited for you.
Alternatives to Nutmeg
Here are several Nutmeg alternatives that you can choose from:
- Moneybox: A good long-term investment management company that slowly increases your wealth over time. It’s the perfect choice for beginners who are still struggling to save money. The platform has a great mobile interface with user-friendly features.
- Moneyfarm: A fully managed platform that’s easy to use. Similar to Nutmeg, Moneyfarm also asks you to fill in a questionnaire to find out the investment scheme that will be suitable for you. One downside to these types of platforms is the lack of control.
- Hargreaves Lansdown: Award-winning investment service that has excellent customer service, a user-friendly mobile app, and extensive educational and research content. The fees may be higher than their competitors, but the company is one of the best in the game.
Pros & Cons of Nutmeg
- Simple and easy to use for beginners
- Trusted provider due to collaboration with JP Morgan
- No hidden fees
- There’s a minimum investment fee for Nutmeg accounts
Nutmeg Review UK – Final Thoughts
Overall, Nutmeg is a great platform for those who want to try passive trading. It’s also ideal for beginners thanks to its simplified interface. The platform has comparatively lower fee structures than most of its competitors.
So I recommend this platform to beginners and passive traders who have at least £100 to start with, as this is the minimum investment amount. Advanced traders who prefer a more hands-on approach may be a little disappointed with Nutmeg.
Is my money safe with Nutmeg?
Yes, your money with Nutmeg is generally considered safe due to its regulation by the Financial Conduct Authority (FCA) in the UK. The FCA provides oversight and sets standards to protect consumers. In the unlikely event of Nutmeg’s insolvency, eligible clients may also be able to claim compensation through the Financial Services Compensation Scheme (FSCS).
How long does it take to withdraw money from Nutmeg?
The withdrawal process from Nutmeg typically takes around 3-7 business days to complete. However, the specific timeframe may vary depending on factors such as bank processing times and any additional verification requirements.