Investing

Nutmeg is a UK based wealth manager with mostly UK-based clients, and this is reflected in our investment process giving a specific importance to UK assets. Here we explain what this means for our portfolios and how we manage this aspect of our investment strategy.

Investors who wait until the end of the tax year to contribute to an ISA could be missing a trick. Being an ISA early bird could help you maximise any returns you make, particularly with the £20,000 ISA allowance for the 2021/22 tax year.

Whether you’re saving for retirement or building your investment portfolio, it can be tempting to hit “pause” when things don’t quite go to plan. Before you stop your monthly contributions take a moment to consider your options and make sure you’re making the right choice for your future. 

The UK’s Financial Conduct Authority (FCA) has today warned young investors who may be taking on big financial risks with speculative investments. Nutmeg’s chief investment officer, James McManus, credited the regulator for differentiating the practices of responsible investment firms who help people to achieve their financial goals with a long-term investing mindset, from unscrupulous firms promoting high-risk investments to investors for whom they are unlikely to be suitable.

Something that comes up a lot when talking about investing is diversification. One simple view of this is “don’t put all your eggs in one basket”. However, there is a lot more to diversification than simply playing it safe or hedging your bets. Behavioural finance studies typically highlight that emotional investing can often derail well thought out, defined investment objectives. Diversification is one of the most important concepts in investing but it only works when investors stay disciplined and don’t make reactive bets because of a fear of missing out (FOMO).

The pandemic has bred a new generation of investors who are bullish on the future and who see socially responsible investing (SRI) as crucial to providing for their financial well-being according to Nutmeg’s latest research. Our research, on the impact of the Covid-19 outbreak on consumer attitudes towards money and investing, reveals that those aged 25-34 feel they will  emerge from the pandemic wealthier, more financially confident and determined to use their money to do good. 

 For March’s Investor Update Kat Mann, our savings & investment specialist and head of PR here at Nutmeg spoke virtually with our chief investment officer, James McManus. They covered the state of the markets, bond yields and inflation, as well as diving into some core changes to Nutmeg’s strategic asset allocation. 

Back in 2016 I used to take the London Underground every day. Typically, I wouldn’t pay much attention to the advertising boards during my daily commute but this was at a point in my life when I had just completed a major transaction and was proudly putting my foot on the property ladder. Therefore, I found myself being drawn to one particular set of adverts involving bears who were interested in investing... 

Whether it’s in the form of cash in birthday cards or something more substantial, the idea of grandparents helping to give their grandchildren a financial head start is not new. In fact, our client services team regularly hears from grandparents looking to put some money away for young children. So, what options do grandparents have? 

The dust has settled on the GameStop story but we feel its legacy will be felt for some time. It wasn’t the victory for the small rebel investor against the titans of finance that many wanted us to believe – the reality is a lot of small investors will have lost their money and their faith in the markets.

The 2020/21 tax year ends at 23:59:59 on Monday 5th April 2021. To ensure you don’t miss out on taking full advantage of the various tax-free allowances that reset at the end of the tax year, we’ve put together a guide with the key dates you need to be aware of. That way, you can make contributions with plenty of time to spare and avoid any last-minute worries during the Easter bank holiday weekend.  

We previously identified the clean energy sector as a beneficiary of long-term structural shifts in the global energy mix. Here we explain why, despite our belief in the longevity of the investment theme, we have recently removed this investment from our portfolios.