Turn on thread page Beta

Any thoughts or experiences with Nutmeg? watch

    • TSR Support Team
    • Very Important Poster
    • PS Reviewer
    • Clearing and Applications Advisor
    • Thread Starter
    Offline

    20
    ReputationRep:
    TSR Support Team
    Very Important Poster
    PS Reviewer
    Clearing and Applications Advisor
    Hi all,

    I'm toying with the idea of investing with Nutmeg and was wondering if anyone has any thoughts or experiences with them?
    • TSR Support Team
    • Clearing and Applications Advisor
    Offline

    21
    ReputationRep:
    TSR Support Team
    Clearing and Applications Advisor
    Imo, you're paying an unnecessary premium with them. If you're after something akin to "fund-and-forget", something like Vanguard LifeStrategy is a cheaper option with comparable purpose.
    Offline

    3
    ReputationRep:
    (Original post by The Financier)
    Imo, you're paying an unnecessary premium with them. If you're after something akin to "fund-and-forget", something like Vanguard LifeStrategy is a cheaper option with comparable purpose.
    You'll pay much lower fees with someone like Nutmeg or Moneyfarm though!
    • TSR Support Team
    • Clearing and Applications Advisor
    Offline

    21
    ReputationRep:
    TSR Support Team
    Clearing and Applications Advisor
    (Original post by lilybridgwood)
    You'll pay much lower fees with someone like Nutmeg or Moneyfarm though!
    Lol no.

    Nutmeg charge 0.75% per annum for a fully managed portfolio or 0.45% on a fixed allocation for portfolios under £100000 and have fund fees ON TOP of that. Moneyfarm charge 0.70% up to £20000, then has a sliding scale to 0.40% for stuff past £500000. LifeStrategy has a simple 0.22% structure regardless of which composition of equity and bonds you go for and how much you have invested. You pay some additional fees for holding it, namely stuff like ISA administration charges with whoever you use to purchase the fund from, but these are low (Vanguard charges 0.15% per annum on their ISA below £250000, which accounting with the Lifestrategy makes it 0.37% to hold the fund - still below what Nutmeg and Moneyfarm charge for your typical person that looks at robo-advisors).

    If you think Nutmeg and Moneyfarm adds value enough to cover the additional cost, then that's fair. But on no basis can you argue that they have lower fees than LifeStrategy.
    Offline

    3
    ReputationRep:
    (Original post by The Financier)
    Lol no.

    Nutmeg charge 0.75% per annum for a fully managed portfolio or 0.45% on a fixed allocation for portfolios under £100000 and have fund fees ON TOP of that. Moneyfarm charge 0.70% up to £20000, then has a sliding scale to 0.40% for stuff past £500000. LifeStrategy has a simple 0.22% structure regardless of which composition of equity and bonds you go for and how much you have invested. You pay some additional fees for holding it, namely stuff like ISA administration charges with whoever you use to purchase the fund from, but these are low (Vanguard charges 0.15% per annum on their ISA below £250000, which accounting with the Lifestrategy makes it 0.37% to hold the fund - still below what Nutmeg and Moneyfarm charge for your typical person that looks at robo-advisors).

    If you think Nutmeg and Moneyfarm adds value enough to cover the additional cost, then that's fair. But on no basis can you argue that they have lower fees than LifeStrategy.
    Fund fees for Vanguard are much higher (0.80%) - whereas the nature of ETFs brings the fees lower with Nutmeg and Moneyfarm (approx 0.2% fund fees)
    • TSR Support Team
    • Clearing and Applications Advisor
    Offline

    21
    ReputationRep:
    TSR Support Team
    Clearing and Applications Advisor
    (Original post by lilybridgwood)
    Fund fees for Vanguard are much higher (0.80%) - whereas the nature of ETFs brings the fees lower with Nutmeg and Moneyfarm (approx 0.2% fund fees)
    Again, no.

    When I'm referring to LifeStrategy, I specifically mean these funds which are fund of funds that take the money you contribute and distributes it in a fixed allocation to other Vanguard funds. As the funds your money go to are also managed by Vanguard, you are effectively investing in the specified Vanguard funds in one go and side-step any individual fund fees to pay. The OCF you see is the only thing you pay directly to hold it. You do not pay fund fees on the underlying funds.

    It's actually typically cheaper to buy the underlying funds yourself, but if you're considering Nutmeg/Moneyfarm you're not really after that level of control and flexibility and of course rebalancing is greater work.
 
 
 
The home of Results and Clearing

2,299

people online now

1,567,000

students helped last year
Poll
A-level students - how do you feel about your results?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.