Every time you create a new pot in your Nutmeg account, you’ll have a choice between two investment styles ⎯ fully managed and fixed allocation.
If you select “Fully managed”, your pot will be managed by our experienced investment team, who will make strategic adjustments over time to help protect your portfolio and seek greater returns. Most of our customers appreciate the extra peace of mind knowing that our team is keeping a close eye on their investments.
Our simple Nutmeg fee for fully managed portfolios is 0.75% up to £100k and 0.35% thereafter, including VAT. In addition to the Nutmeg fee, fully managed pots have an average investment fund cost of 0.19%, charged by the fund providers, and an average effect of market spread of 0.10% - these costs are included in the total fee shown in your account.
If you select “Fixed allocation”, your pot will be assigned to one of 5 fixed, globally-diversified, risk-based portfolios. These portfolios have been carefully crafted by our investment team, but beyond that we keep our hands off. They also feature 40% lower fees than our managed portfolios, so they’re a great way to get the greatest diversification at the lowest cost. Fixed allocation portfolios include automatic rebalancing and dividend reinvestment. In general, we recommend fixed allocation portfolios for those who are a bit more experienced with investing and are happy to ride out the inevitable ups and downs of the markets without our guiding hand.
Our simple fee for fixed allocation portfolios is just 0.45% up to £100k and 0.25% thereafter, including VAT. In addition to the Nutmeg fee, fixed allocation pots have an average investment fund cost of 0.17%, charged by the fund providers, and an average effect of market spread of 0.10% - these costs will be included in the total fee shown in your account.
You have the choice of these investment styles with every pot you set up except for pensions, which are managed. You can have any combination of fixed and managed pots as you like. Plus, you can change your investment style at any time. It’s all up to you.