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 where applicable
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 where applicable. 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 average investment fund cost for Nutmeg fully managed portfolios is based on a 3 year annualised investment fund cost, asset-weighted as at 30/06/2020. The average investment fund cost for Nutmeg fixed allocation portfolios is based on a simple average investment fund cost as at 30/06/2020. The average investment fund cost for Nutmeg socially responsible portfolios is based on a simple average investment fund cost as at 30/06/2020. Source: Nutmeg portfolio holding data between 01/11/2015 and 30/06/2020.
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 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 30/06/2020.