Frequently Asked Questions
How does it work?
In a nutshell: we learn about you, choose investments for you, and then — with your contributions — build the portfolio on your behalf, showing you the results in an intelligent, straightforward manner. For a more thorough description visit how it works or read about how we invest.
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Is there a minimum investment?
Yes, there is a minimum investment of £1,000 per fund you create. We aim to offer truly diversified portfolios. Because individual investments can be costly, investing smaller sums could result in a portfolio which is overly exposed to a particular asset class, making it incompatible with your investment goals. You can add more money whenever you like.
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Am I locked in?
No. Investing is a long-term proposition, but with Nutmeg, you can withdraw whenever you like and there's no minimum investment period.
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Couldn't I do this myself?
You could replicate our portfolios on your own, but rebalancing and monitoring your portfolio could result in high trading charges, not to mention time and hassle. Plus, because we trade in bulk across our clients, our costs are even lower.
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Can I see historical investment performance?
FCA regulations only permit us to publish investing performance for full 12 month periods. As such we intend to publish our performance data by Summer 2013.
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What does it cost?
We charge an annual management fee calculated according to the total value of your portfolio — known as your Assets Under Management, or AUM. This fee starts at 1% and goes as low as 0.3%, including VAT, as you collect nutmegs, our points-based loyalty scheme. Charges for cash withdrawals only apply if you want your money faster than usual - more about withdrawals. The rest — including professional discretionary investment management, monthly rebalancing, reports and support — is included in the management fee. Read more about our fees »
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What am I investing in?
Collective Investment Vehicles – primarily Exchange Traded Funds (ETFs) — make up our current investment universe. They are non-complex, physically-backed and liquid securities that comprise a range of asset classes including equities, bonds, commodities and cash. As an entirely independent company, we can select from any assets, holdings and securities that we like — we're not tied to anyone. Read more about what we invest in »
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How secure is it?
We take security very seriously at Nutmeg. Like many investment managers, we believe that the safest way of looking after your investments is to appoint a “custodian bank” to hold your money. Our custodian is called Pershing Securities Limited, which is part of BNY (Bank of New York) Mellon, the world’s largest custodian with £16 trillion in assets under custody and payments averaging £1 trillion per day. Pershing serves thousands of investment managers, high-net-worth individuals and major banks worldwide, including Kleinwort Benson, Nomura and Rothschild.
As well as safeguarding your assets, it is Pershing’s responsibility to process payments to and from your Nutmeg account and to carry out the trades which we authorise. Pershing holds your investments in a segregated account for added security and never lends your assets to third parties. This means that your investments are protected in the unlikely event that either Nutmeg or Pershing are declared bankrupt. Nutmeg is also covered by the Financial Services Compensation Scheme, which means you may be entitled to compensation if we cannot meet our obligations.
In addition, our site is protected to modern bank standards with 256-bit SSL encryption. And when it comes to communicating with us, we provide you with a secure channel to send and receive messages, called Nutmail.
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Can I use Nutmeg if I'm not a UK resident?
Nutmeg is available to UK residents only. This means you can be Italian, Swedish, Japanese or another nationality (though unfortunately not American - see below) and as long as you are a UK resident for tax purposes you are eligible to invest with Nutmeg. If, after opening a Nutmeg account, you later decide to move overseas you might have to stop paying in to your Nutmeg account.
Unfortunately, Nutmeg is currently unavailable to American citizens (even those with dual nationality) due to the US government's tax reporting requirements.
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What are nutmegs?
Nutmegs are our points-based loyalty scheme. You collect them for investing money with us, staying with us, and referring your friends to us. The more you collect to reach thresholds, the more your fees drop. Read more about nutmegs »
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How easy is it to cancel?
Signing up is free and carries no obligation to invest. We don't charge you a penny until you transfer money into your Nutmeg account. And after that, you can close your funds and withdraw money whenever you decide. Please remember, however, that you may not get back the full amount you invested.
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How easy is it to withdraw money?
It’s your money, and you can request all or part of it back at any time. Withdrawals are free if you aren’t in a rush, and there are standard charges if you are. Apart from that, we don’t have any exit fees. After we close your account, we hold your personal information for a time as required by law. You should always remember, however, that investments are subject to market risk and you may not get back the sum you invested. Read more about the withdrawal process »
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How easy is it to sign up?
Very. We request some simple information, and ask you a few questions to make informed decisions about how to invest your money.
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How does Nutmeg compare to other options I have?
Your other main options are to build a portfolio yourself (time-consuming and you'll face commission charges) or to hand your money over to someone else (often costly and opaque). We want to give you a different, cost-effective experience. We put together a table of how Nutmeg compares to other investing options.
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Does Nutmeg offer pensions?
We don't currently offer pensions.
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Do you give financial advice?
In short, no. If you’re wondering about investing in a particular product, the first step to consider is whether investing at all is actually the right course of action. To make your mind up, you might look at such factors as your current financial position, your financial objectives for the future and your views on risk. You might consider alternatives such as cash ISAs or property. You might also talk to a qualified financial adviser. At Nutmeg we do not give advice in these areas. Neither can we specifically recommend that Nutmeg is the best option for you. The ultimate decision to invest is yours. Please note, therefore, that before you become a customer, no information on our website is personalised or intended as advice in any way. If you are unsure if investing is right for you, please seek independent financial advice.
But if you do decide to invest with Nutmeg, we’re there every step of the way. We’ll give you as much information as we can to keep the process simple, fun and intuitive. Each time you create a fund, you can enter data such as your attitude to risk, your contributions and your timeframe in order to explore potential investment paths. We will then carefully check the personal financial information you’ve given us to see if your goals are appropriate and achievable. If we believe that they’re not, we will warn you. We may also reduce your exposure to risk accordingly. We will then invest your money in a portfolio which we believe is most suitable for your investment objectives and risk tolerance.
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Do you give investment advice?
In short, no. There are two types of investment management: advisory and discretionary. Nutmeg is a discretionary investment manager, which means that we take responsibility for the investment decision making and transactions. We do not give advice. Advisory investment managers, on the other hand, advise their clients about which investments to choose. It is then up to the client whether they take this advice. An advisory investment manager must seek consent for each transaction.
Once you have taken the decision to invest with Nutmeg, our investment team makes decisions to buy and sell your investments on your behalf, always bearing in mind your objectives and risk tolerance. You do not have to give your consent for every transaction; instead, you agree that we’ll take responsibility for your investments when you accept our Terms and Conditions. In these terms, we promise to manage your account with skill, care and in accordance with the information you give us. We’ll spend every moment of the day trying our best to protect and grow your portfolio.
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Didn't see your question?
Get more answers in our ISA section, or our Support Library.
Risk Warning
With investment comes risk. The value of your portfolio with Nutmeg could go down as well as up and you may get back less than you invest. Learn more »