Is Nutmeg good for investing?
Independent review by Boring Money
Investment expert's opinion
A decent option for less confident beginners, this is the biggest of the so-called robo advisers in the UK . Free financial guidance can also be booked on a free call with a real-life human (whoop!). For those interested in sustainable investments, there is a nice level of detail here. Now easy to link up to the Chase app for those who bank there, which makes tracking and monitoring a lot easier to do. The integration was seamless when I tried it
*This is the view of investment expert Holly Mackay based on her first-hand customer experience as a test account holder. This does not constitute regulated advice. You can read more about Holly's investments here.
Who is Nutmeg?
Nutmeg is a digital wealth manager which was founded in 2011. It offers a range of ready-made portfolios that invest customers’ money in line with their investment goals and appetite for risk. In 2021 it was acquired by JP Morgan Chase, America’s largest bank and one of the biggest in the world. Nutmeg itself has over 200,000 customers in the UK and states that its aim is to provide a service which is “a shining example of how investing should be”.
Who is Nutmeg good for?
Nutmeg is a decent option for less confident investors or those who find investing a bit baffling and could do with a helping hand. There’s a wide range of different investment approaches and a lot of portfolios on offer compared to its competitors. Chase banking customers will also like the integration. Plus, it’s backed by investment banking giants JP Morgan.
Pros and cons
Investments
Nutmeg clients can pick from five different investment styles, with each style offering a choice of multiple risk levels. The table below summarises the differences between investment styles.
Investment Style | Fully Managed | Thematic Investing | Smart Alpha portfolios | Socially Responsible Investing | Fixed Allocation |
What is it? | Actively managed global portfolio, with changes made to reflect the current economic environment. | Actively managed global portfolio, tilted toward a specific future-focused theme, such as technology or electrification. | Actively managed global portfolio combining Nutmeg’s core principles and J.P. Morgan’s in-house investment expertise. | Ready-made portfolios designed to incorporate companies and bond issuers that have high environmental, social and governance (ESG) standards. | A globally diversified portfolio that is automatically rebalanced and manually reviewed once a year. The cheapest option that Nutmeg provide. |
There’s a £500 minimum initial investment required to open a Nutmeg ISA, SIPP or GIA and a £100 minimum initial investment to open a Nutmeg Lifetime ISA or Junior ISA.
Accounts
Nutmeg offers a range of accounts. The table below shows a breakdown of which ones are available. Scroll down beyond the table for a summary of Nutmeg’s ISA, Pension, LISA and JISA.
Stocks & Shares ISA | Pension (SIPP) | General Investment Account (GIA) | Lifetime ISA | Junior ISA |
✔ | ✔ | ✔ | ✔ | ✔ |
Pay no Nutmeg management fees on Income Investing pots for the remainder of 2025. £10,000 minimum investment.
Using the expertise of J.P. Morgan Asset Management, Nutmeg's new investment style focuses on generating a regular stream of income from your investments, while also growing your wealth for the future. Nutmeg invests a lump sum from you into exchange-traded funds (ETFs) likely to pay dividends, and actively manages your portfolio towards delivering a monthly payout.
Nutmeg clients will pay no Nutmeg management fees on their Income Investing pots in 2025.
Only available on ISA and General Investment accounts
Offer available to new and existing customers.
With investment, your capital is at risk. Income isn't guaranteed and may fluctuate. £10,000 minimum investment. T&Cs and other charges apply.
Fees and charges
The total cost of investing with Nutmeg depends on two main things: the amount of money you have invested and the investing style you choose.
Amounts over £100k are charged at a lower platform fee and investment styles that require more activity from Nutmeg and the underlying investment managers are usually slightly more expensive.
In general, expect to pay between 0.65% - 1.09% depending on what you go for, which works out at £6.5 – £10.90 per year on a £1,000 investment.
The table below shows a breakdown of Nutmeg's charges, with a few worked examples underneath.
Investment style | Fully Managed | Thematic Investing | Smart Alpha portfolios | Socially Responsible Investing | Fixed Allocation | Income investing |
Platform fee (portfolio less than 100k)* | 0.75% | 0.75% | 0.75% | 0.75% | 0.45% | 0.75% |
Fund management fee | 0.19% | 0.23% | 0.32% | 0.23% | 0.16% | 0.38% |
*Platform charges drop from 0.75% to 0.35%, and from 0.45% to 0.25% for the Fixed Allocation portfolio, on amounts invested above £100,000. You will be charged a 0.04% market spread fee across any of the portfolios. Read more on Nutmeg's fees on their website here.
See how much it would cost you
Use the handy calculator below to calculate the cost of an account. Just select which type of account you want to use, type in the amount you want to invest and - hey presto! - our calculator will give you an estimate of how much it costs. Please note estimated fees are calculated excluding promotional offers.
Step 1. Select account type.
Step 2. Enter the amount you are looking to invest.
Estimated fees:
£6.60
All Inclusive
This cost represents the total amount you will pay. It is based on a typical account and will be a very good guide, but may differ depending on the investment option you pick.
The boring disclaimer bit
This is a free resource for our readers. We’ve tried really hard to ensure that these calculations are correct and can promise you there’s no monkey business or favouritism going on. But please don’t rely on these calculations without double checking yourself. If you do think you have seen an error please contact community@boringmoney.co.uk and help us to make this better. More information on the assumptions we've used to calculate these investment fees can be found here.
Customer reviews
Nutmeg customers generally like the “slick” website and app which are “easy to understand” and provide “lots of information”. Many customers cited the “quick” and “straightforward” account setup process, while one customer said it is “a good starting point”. However, more recently some negative reviews have referred to disappointment in Nutmeg’s investment performance, particularly when compared to competitive interest rates on cash saving accounts. This is unlikely to be Nutmeg specific, and is probably aligned to the wider investment market as a whole.
Your opinion matters!
Leave a review for Nutmeg
28 November 2024
Innovative
27 November 2024
Lots of information available on the website and easy to contact them with concerns and issues. Easy to use website. Makes investing more understandable
26 November 2024
Easy to use. Easy to check investment. Good savings rat
Most asked questions
Is Nutmeg safe?
Nutmeg is authorised and regulated by the Financial Conduct Authority (FCA). If a fund fails due to fraud or mismanagement, you may be eligible for compensation from the Financial Services Compensation Scheme (FSCS). The FSCS protection is capped at £85,000 per person, per fund manager (not per individual fund). However, if your investments lose value due to normal market conditions or your investment choices, this is part of the normal risk of investing and is not covered by FSCS compensation.
Who owns Nutmeg?
Nutmeg was bought by JPMorgan Chase in 2021 in a deal allegedly worth £700m. JPMorgan is the largest bank in the United States and the largest in the world by market capitalisation.
What does Nutmeg invest in?
Nutmeg offers globally diversified portfolios which are tailored to your individual risk profile and investment goals.
The portfolios are invested in exchange traded funds (ETFs), which are like baskets of dozens – and sometimes even hundreds – of investments rolled into one. So you don’t have to go and buy all those individual investments yourself!
The ETFs which underpin Nutmeg’s portfolios primarily invest in:
Developed market equities
Emerging market equities
Government bonds - developed
Government bonds - emerging
Corporate bonds
Global equities
You can read more about how and what Nutmeg invests in on its website here.
Can I invest in individual funds on Nutmeg?
No, you can’t buy individual funds on Nutmeg, nor can you buy individual shares. It only offers ready-made portfolios, split across the five different investment styles which we mentioned earlier.
Do I pay tax on money invested with Nutmeg?
You may need to pay tax if you invest with Nutmeg. However, if and how much depends on a number of factors including which type of Nutmeg account you’re using, the performance of your investments and your usual rate of Income Tax.
For example, if you use a Nutmeg ISA, you won’t need to pay any tax on your investments because ISAs are tax-free. However, if you’ve got a General Investment Account (which is liable for tax), you may find that you do need to pay taxes such as Capital Gains Tax (CGT) or Dividend Tax, depending on the amount of income earned in a given tax year.
For more information about how investments are taxed, read our article Three taxes to know about if you’re an investor.
Glossary
Not 100% sure you understand something we’ve written in this review?
Discover jargon-free definitions of the most common words and technical terms used in the world of investing.
Risk warning
As is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
All information in this review correct as at 01/01/2024.
