Should I move from Hargreaves to Nutmeg?

27 July 2021

Question by Stephen

I currently have approx £300k in a Hargreaves Lansdown product split between ISA’s for my wife and myself, and a SIPP in my own name, plus a small SIPP in my wife’s name. I accept their charges are high, but these investments do not seem to have increased much at all after taking fees into account. I am drawn to the likes of Nutmeg and ii. It seems a no brainier or am I being naive.

Answered by Boring Money

Hi Stephen,

Comparing Hargreaves Lansdown vs Nutmeg based on charges does on the face of it, seem to make sense, however, the key thing to consider is what you're actually investing in within the SIPP & ISA because that's what drives the growth and performance. Imagine if you only held cash within the Hargreaves accounts, but you held a portfolio of high-growth tech stocks or something else in Nutmeg or ii.

The performance would naturally be very different. You need to compare apples with apples. With Hargreaves Lansdown, you typically pick your own stocks or funds whereas Nutmeg builds portfolios for you. You need to consider what it is you need or want from your investments and providers. I've sat down with a few clients who have Nutmeg accounts and sadly none of them have a clue on what they're actually investing in, even if they like the performance and fees. The same is not the case when I speak to most Hargreaves Lansdown or ii clients. Most know what funds or stocks they have, why they have them, and what they're doing.

My advice is not to just jump from one provider to another based on fees alone. See if you can alter the investments within your existing account to match your risk profile and find investments that you both understand and that will help you achieve your goals. If you do want to have your investments managed for you then there are plenty of choices out there, but make sure you do your research and understand what it is you'll be investing in and if they are right for you. As ever, if in doubt why not speak to an independent financial adviser who can help you with your thought process. Any decent one will give you a free initial meeting to discuss your circumstances and outline some options for you.

Best of luck.

Answered by

Boring Money