Nutmeg

Overview

Nutmeg is the UK’s largest robo-advisor, established in 2011 and now managing over £4.5 billion for more than 200,000 customers. Acquired by JP Morgan in 2021, Nutmeg offers professionally managed investment portfolios using modern portfolio theory and ETF-based diversification. The platform is designed for hands-off investors who prefer automated portfolio management over DIY investing.

Key Features

• Professionally managed diversified portfolios
• Risk-rated investment strategies (1-10 scale)
• Automated rebalancing and optimization
• Tax-efficient portfolio management
• ESG and sustainable investing options
• Goal-based investing approach
• Comprehensive pension and ISA services

Trading Platforms

Nutmeg Web Platform

Clean, informative interface featuring:

• Portfolio performance tracking and analytics
• Goal-setting and progress monitoring
• Risk assessment and portfolio allocation
• Market insights and educational content
• Account management and settings
• Tax reporting and statements

Nutmeg Mobile App

User-friendly mobile experience offering:

• Real-time portfolio monitoring
• Performance tracking and alerts
• Goal progress visualization
• Market updates and insights
• Easy deposits and withdrawals
• Secure authentication

Fees and Costs

Management Fees

• Portfolios up to £100k: 0.75% annually
• Portfolios £100k-£500k: 0.35% annually
• Portfolios over £500k: 0.35% annually
• Additional underlying fund costs: ~0.19% annually

Fixed Fee Option

• £300 annual fee for balances over £100k
• May be more cost-effective for larger portfolios
• Same investment management and services

Account Fees

• ISA management: Included in management fee
• SIPP management: Included in management fee
• Deposits: Free
• Withdrawals: Free
• No setup or exit fees

Account Types

General Investment Account

• Fully managed portfolio
• Tax-efficient where possible
• Risk-rated strategies available
• Regular investing options

Stocks & Shares ISA

• £20,000 annual allowance
• Tax-free growth and income
• Same portfolio management
• Automatic tax optimization

Junior ISA

• £9,000 annual allowance (2024/25)
• Long-term investing for children
• Risk-appropriate portfolios
• Compound growth benefits

SIPP (Self-Invested Personal Pension)

• Pension wrapper for retirement
• Tax benefits on contributions
• Professional management
• Drawdown services available

Regulation and Security

• FCA regulated (Firm Reference: 524772)
• Owned by JP Morgan (since 2021)
• FSCS protection up to £85,000
• Client assets held with State Street
• Comprehensive insurance coverage

Pros and Cons

Pros

• Hands-off, professionally managed investing
• Strong track record and performance
• Risk-rated portfolio options
• Automatic rebalancing and optimization
• Tax-efficient portfolio management
• Goal-based investing approach
• Comprehensive ISA and pension services
• Backed by JP Morgan’s stability
• Good educational resources

Cons

• Higher fees compared to DIY platforms
• Limited control over individual investments
• No ability to pick specific stocks or funds
• Minimum £500 deposit requirement
• Less suitable for active traders
• Limited customization options
• No direct equity investments
• Platform complexity may overwhelm some users

Who Is This Broker For?

Nutmeg is ideal for:

• Hands-off investors preferring professional management
• Beginners wanting automated investing
• Busy professionals lacking time for portfolio management
• Those seeking diversified, risk-appropriate portfolios
• Goal-based investors (retirement, house purchase, etc.)
• ISA and pension savers
• Investors comfortable with higher fees for convenience
• Those wanting tax-efficient management

Bottom Line

Nutmeg excels as a robo-advisor, offering professional portfolio management with minimal effort required from investors. While fees are higher than DIY platforms, the convenience, professional management, and tax optimization may justify the cost for many investors. The platform is particularly well-suited for those who want to benefit from professional investment management without the complexity of choosing individual investments. The JP Morgan backing adds credibility and financial strength to the proposition.

Investment Warning: The value of investments can go down as well as up, so you may get back less than you invest. Past performance is not a guide to future performance.