If you invest
Approximate total cost of investing in a
made up of:
Estimated cost of investing over the next 12 months (assuming returns of 0%)
Nutmeg fee per annum, including VAT
Like other investment managers, Nutmeg charges a fee for managing investments. This is charged by us as a percentage of your portfolio value, and it includes VAT. We calculate the fee daily based on your portfolio value at the close of business, and then collect fees automatically from your Nutmeg account once a month. Learn more, including how to see what you’ve paid
Average investment fund cost per annum
When you invest with Nutmeg, as with any other investment manager, we use your money to buy investments on your behalf. These funds carry their own charges that impact your portfolio performance. But that’s why we primarily use exchange-traded funds (ETFs) — to keep your costs as low as possible. This figure also accounts for estimated transaction costs within the funds. Learn more about the investments we choose
The 0.19% average investment fund cost for Nutmeg fully managed portfolios is based on a 3 year annualised investment fund cost, asset-weighted as at 31/10/2018. The average investment fund cost of 0.18% for Nutmeg fixed allocation portfolios is based on a simple average investment fund cost as at 31/10/2018. The average investment fund cost of 0.33% for Nutmeg socially responsible portfolios is based on a simple average investment fund cost as at 31/10/2018. Source: Nutmeg portfolio holding data between 01/11/2015 and 31/10/2018.
Average effect of market spread per annum
When you invest with Nutmeg, we buy and sell assets on your behalf. Like all trading activity, during this process we’re subject to market spread. This is defined as the difference between the price to buy, and the price to sell.
To give you an example, when exchanging currency for a holiday abroad, you’ll see a different price when buying the foreign currency than when selling it back again. The price you buy at is known as the 'offer' price and the price you sell at is the 'bid' price. The difference between them is known as the bid-offer, or market spread.
At Nutmeg, we use exchange-traded funds (ETFs) to build your portfolio, which, like currencies and most financial instruments, have a market spread. We work hard to choose ETFs with smaller spreads, and we combine customer orders when trading to minimise this cost.
The 0.08% average effect of market spread cost is based on the 3 year annualised effect of market spread for fully managed portfolios. Source: Asset-weighted average, Nutmeg trade data between 01/11/2015 and 31/10/2018.