Every time you create a new ISA, general investment account, or LISA pot in your Nutmeg account, you’ll have a choice between three investment styles ⎯ fixed allocation, fully managed and socially responsible.
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 designed to perform without intervention. We’ll keep you invested in assets matching your risk level, only reviewing these assets once a year to make sure they’re still right for you. Beyond that, we keep our hands off.
These portfolios 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 are impacted by investment fund costs charged by the provider and are subject to the effect of market spread. Learn more about investing costs and charges.
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 are impacted by investment fund costs charged by the provider and are subject to the effect of market spread. Learn more about investing costs and charges.
If you select ‘Socially responsible’, your pot will follow the same investment strategy as our fully managed portfolios, guided by the analysis of our in-house investment team. These portfolios will also incorporate a social responsibility focus, over-weighting towards companies with strong sustainability profiles, whilst avoiding those that engage in controversial activities.
Our simple Nutmeg fee for socially responsible portfolios is 0.75% up to £100k and 0.35% thereafter, including VAT. In addition to the Nutmeg fee, socially responsible pots are impacted by investment fund costs charged by the provider and are subject to the effect of market spread. It’s important to note that, on average, the underlying fund costs in these portfolios are expected to be slightly higher than the funds used in our fully managed and fixed allocation portfolios. Learn more about investing costs and charges.
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, managed and socially responsible pots you like. Plus, you can change your investment style at any time, although it will have an impact on performance. It’s all up to you.