Nutmeg’s new feature gives clearer projections of investing costs

Alex Cringle


2 min read

Watch our walk-through video or read our step-by-step process to see how we’re making costs more transparent than ever.

To be clear, we’ve made up all the figures shown here so we can demonstrate how the new feature works – there’s no customer data involved.

Building on the new MiFID II regulations, we’re committed to setting the industry standard for making costs easy to understand. We believe customers have the right to have all the information to make the best investment decisions for them. And we want to play a role in empowering investors.

To honour this commitment, our new feature means you’ll be able to understand the projected costs of investing both annually and across the entire lifetime of your investment with us.

New and existing customers across all our investment products stand to benefit from this clearer view. If you don’t yet have a pot with us, you’ll be able to see this when you’re setting one up, while existing customers can take a look anytime.

Step-by-step process

If you haven’t already, set your investment timeframe…

 

Nutmeg timeframe

 

…set what you’ll be contributing…

 

Nutmeg pay in

 

…and select the risk level that’s right for you.

 

Nutmeg risk level

 

You can change these at any time and your personalised projection chart on the right-hand side of the page will update automatically.

 

Nutmeg projection chart

 

Then we get to the new stuff. A new table will now appear beneath this chart. It sets out your projected portfolio value after investing for 12 months, and crucially, across the entire timeframe you expect to invest for.

You should note that, to get to these numbers, we are assuming medium portfolio performance, taking the Nutmeg management fee, the underlying investment fund costs, the effect of market spread and the effect of inflation into account to show you projections in today’s money.

 

Expected costs and charges table

 

We then break down your projected portfolio values even further. We present the costs and charges we expect you’ll pay, over a year and for the whole time you’re expecting to invest with us.

Finally, we give you an indication of your potential portfolio gain once these costs and charges are taken away.

Taking transparency seriously

We think this new feature is a step in the right direction. But we’re not stopping here.

We’re building on the new MiFID II regulations to make sure we’re leading the industry when it comes to transparency and fairness. We want you to hold us to account on this, so if you have any feedback about any aspect of our service, let us know.

Risk warning

With investments, your capital is at risk.

Projections are never a perfect predictor of future performance, and are intended as an aid to decision-making, not as a guarantee. The projection includes the effect of Nutmeg fees, investment fund costs, and market spread – personalised to your planned contributions.

Alex Cringle

Alex Cringle

Alex is a senior product manager and team lead at Nutmeg. Over the past year, he’s been working on the information we provide investors when they’re making investment decisions, including a detailed breakdown of the costs and charges people face and the projections they see. He’s also involved in our user research processes that support our product development framework.


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