Nutmeg online investment - opinions?
Discussion
Has anyone got anymore experiences with Nutmeg or others? I've been using Nutmeg for the past few years with good returns, but I am aware there's a few different providers out there now.
I came across this site - wealthdunk.com- which seems to have a lot of good information (their comparison tool is particularly interesting), but was wondering if there are any of you had personal experience with the providers?
Thanks!
I came across this site - wealthdunk.com- which seems to have a lot of good information (their comparison tool is particularly interesting), but was wondering if there are any of you had personal experience with the providers?
Thanks!
Edited by 22s on Sunday 19th March 21:23
JulianPH said:
Ahh, Parmenion provide your portfolio management then (I take it)?
Yes, they are good, very sad to hear of Richard's untimely death in January. I do hope they continue well and that Aberdeen ownership does not change things.
Management buy-back on the cards now? The fusion of Parmenion and Aberdeen has worked well. But Standard Life..?Yes, they are good, very sad to hear of Richard's untimely death in January. I do hope they continue well and that Aberdeen ownership does not change things.
22s said:
Has anyone got anymore experiences with Nutmeg or others? I've been using Nutmeg for the past few years with good returns, but I am aware there's a few different providers out there now.
I came across this site - wealthdunk.com- which seems to have a lot of good information (their comparison tool is particularly interesting), but was wondering if there are any of you had personal experience with the providers?
Thanks!
Download this free report for the good, the bad and the sometimes ugly with robo. Objective, totally independent and as research organisations go, Langcat is very credible within the industry. I'm not just saying it because I reflect well in it, but it's a great report.I came across this site - wealthdunk.com- which seems to have a lot of good information (their comparison tool is particularly interesting), but was wondering if there are any of you had personal experience with the providers?
Thanks!
Edited by 22s on Sunday 19th March 21:23
http://www.langcatfinancial.co.uk/white-paper/dire...
Ginge R said:
Download this free report for the good, the bad and the sometimes ugly with robo. Objective, totally independent and as research organisations go, Langcat is very credible within the industry. I'm not just saying it because I reflect well in it, but it's a great report.
http://www.langcatfinancial.co.uk/white-paper/dire...
Thanks for posting that. I may be looking at moving my pension and your site is on my list of potentials, so good to understand a bit more about how robot works. http://www.langcatfinancial.co.uk/white-paper/dire...
I'm a bit late to the party as I only started reading up on this. I spoke with their customer service today, what I really want to know is: when the market drops (which is going to be inevitable at some point in time) is there any way they are going to preserve my capital? It looks like a long only strategy by them albeit invested in various markets. If they all drop, everyone's going to be out of pocket.
The equity curves look great since 2012 but that's nothing too spectacular considering the bull run we've been on in the markets. Considering that Nutmeg advertise on TV / train stations, I believe that £5k is a lot for the average person to put in who wants to dip their toe in the water. I think most people would think twice before firing over £5k to a site like this. You can start with £500 and put in £100 every month until you get to £5k, it does seem a little prohibitively high to those who may wish to try something slightly different to their conventional savings instruments.
The equity curves look great since 2012 but that's nothing too spectacular considering the bull run we've been on in the markets. Considering that Nutmeg advertise on TV / train stations, I believe that £5k is a lot for the average person to put in who wants to dip their toe in the water. I think most people would think twice before firing over £5k to a site like this. You can start with £500 and put in £100 every month until you get to £5k, it does seem a little prohibitively high to those who may wish to try something slightly different to their conventional savings instruments.
With these types of long term investments time is the true hedge against downturns. You're dripping money in every month over twenty years so averaging in all the time. Trying to hedge with shorts is just too complex and the best tactic is, if you do anything, to increase your monthly payments for a period after a sustained bear market.
I bit the bullet and put a bit of money on there. Not £5k but less than that and i'll chuck £100 at it each month and in 6 months i'll see how it's doing.
Overall I think the markets look a bit toppy but if I was going to bet on that I could do it myself so i'll give it a go and review the performance.
I opted for risk level 7 (out of 10). It did suggest risk level 8 for me but i'm happy to give this a try. If the market does start to dump then i'll probably lower risk level until i'm happier with the equities market.
Overall I think the markets look a bit toppy but if I was going to bet on that I could do it myself so i'll give it a go and review the performance.
I opted for risk level 7 (out of 10). It did suggest risk level 8 for me but i'm happy to give this a try. If the market does start to dump then i'll probably lower risk level until i'm happier with the equities market.
I'll chip in here because I invested in Nutmeg when it launched, primarily because I thought it was a neat idea and was curious to see how they would do. I started with a lump sum and have been drip feeding once a month ever since, within an ISA wrapper. To me its a set and forget thing and I have found it to do exactly what it claims to do very competently.
Cold hard stats are:
Started Apr'13 in the 8/10 bucket
To date it is up 21.3% after fees
Current allocation is:
80% developed equities
7% Developed Mkt Govt't Bonds
7% Gold
5% EM Equities
1% cash
That is spread across 15 different low cost trackers.
Fees are 0.75% with no initial set up fee
That 0.75% does not include the dealing and fund fees but that are obviously taken account of in the "returns after fees"
Ok performance not stellar but there have only been a couple of occasions when the fund value has dipped below the sum of my contributions. Jan'16 was an ugly mkt sell off and the fund held up quite well which is encouraging. There are memos explaining changes in strategy, outlook etc, much as you would get from a "traditional" wealth manager. E.G. South American equities look cheap, Japanase equities look expensive, commodity stocks look cheap etc and shuffle the portfolios accordingly. As an example they sent a memo out pre the Brexit vote explaining that they were making changes to the portfolio. It's nice to know that for these market events that someone is making educated decisions on your behalf.
Yes, its more expensive than owning the DB X / Vanguard trackers directly, but I think unless you have plenty of time (and expertise) to commit to monitoring the markets, or you are happy to be 100% passive, or you have a large chunk of cash to invest in the markets, then I think it provides a good middle ground. They monitor the efficiency of the underlying trackers, looking to have the best performing and lowest fee options.
FWIW I don't think its a suitable way to try and play the market by jumping out of one risk bucket into another. I believe the investment cycle is every 2 weeks (that way in flows and out flows can offset each other) so your timing would have to be extremely fortuitous. I think you are better to properly appraise your approach to risk and then let them do their job. You may find that by jumping from one bucket to another you are exposing yourself to more or less risk for your appetite at just the wrong times.
Hope that helps OP!
Cold hard stats are:
Started Apr'13 in the 8/10 bucket
To date it is up 21.3% after fees
Current allocation is:
80% developed equities
7% Developed Mkt Govt't Bonds
7% Gold
5% EM Equities
1% cash
That is spread across 15 different low cost trackers.
Fees are 0.75% with no initial set up fee
That 0.75% does not include the dealing and fund fees but that are obviously taken account of in the "returns after fees"
Ok performance not stellar but there have only been a couple of occasions when the fund value has dipped below the sum of my contributions. Jan'16 was an ugly mkt sell off and the fund held up quite well which is encouraging. There are memos explaining changes in strategy, outlook etc, much as you would get from a "traditional" wealth manager. E.G. South American equities look cheap, Japanase equities look expensive, commodity stocks look cheap etc and shuffle the portfolios accordingly. As an example they sent a memo out pre the Brexit vote explaining that they were making changes to the portfolio. It's nice to know that for these market events that someone is making educated decisions on your behalf.
Yes, its more expensive than owning the DB X / Vanguard trackers directly, but I think unless you have plenty of time (and expertise) to commit to monitoring the markets, or you are happy to be 100% passive, or you have a large chunk of cash to invest in the markets, then I think it provides a good middle ground. They monitor the efficiency of the underlying trackers, looking to have the best performing and lowest fee options.
FWIW I don't think its a suitable way to try and play the market by jumping out of one risk bucket into another. I believe the investment cycle is every 2 weeks (that way in flows and out flows can offset each other) so your timing would have to be extremely fortuitous. I think you are better to properly appraise your approach to risk and then let them do their job. You may find that by jumping from one bucket to another you are exposing yourself to more or less risk for your appetite at just the wrong times.
Hope that helps OP!
I can only speak for mine, but I make sure that anyone investing with Fiver considers that they have adequate access to liquid cash, adequate and appropriate financial protection for them and any family, and that existing debts would be better repaid or reduced, before investing. You're still investing, not saving, and all usual investment caveats apply. You could lose money, so the process determines if you're 'right' to invest in the first place. Similarly, if you're someone who wants to try and time the market, forget it - it's not for you.
Robo is not intended to replace a full on, face to face service, neither does it offer a holistic assessment of someone's overall financial situation or take into detailed account the suitability of any existing investments that someone may hold.
It's a very simple investment service offering underlying sophisticated investment management for someone who has simple needs and who isn't totally sure of a) how they should invest, or b) whether they should invest. It leads you through a 'risk' profiling process to suggest suitability. What it doesn't do is sell you an investment solution that I don't think is suitable in the first place, and secondly, suitable for that specific customer who is undertaking the process.
I hesitate to use the word 'cheap' because it implies lack of quality. It offers discretionary fund management at no additional cost, over a range of proven passive funds, and advice. The all-in cost is c0.8% per annum, which is up to others to determine value etc. There is a wider range of providers out there - and I can't speak for what other providers offer of course.
Robo is not intended to replace a full on, face to face service, neither does it offer a holistic assessment of someone's overall financial situation or take into detailed account the suitability of any existing investments that someone may hold.
It's a very simple investment service offering underlying sophisticated investment management for someone who has simple needs and who isn't totally sure of a) how they should invest, or b) whether they should invest. It leads you through a 'risk' profiling process to suggest suitability. What it doesn't do is sell you an investment solution that I don't think is suitable in the first place, and secondly, suitable for that specific customer who is undertaking the process.
I hesitate to use the word 'cheap' because it implies lack of quality. It offers discretionary fund management at no additional cost, over a range of proven passive funds, and advice. The all-in cost is c0.8% per annum, which is up to others to determine value etc. There is a wider range of providers out there - and I can't speak for what other providers offer of course.
LeoSayer said:
g4ry13 said:
If the market does start to dump then i'll probably lower risk level until i'm happier with the equities market.
Why?That will just make it harder to recover any losses.
Ginge R said:
Management buy-back on the cards now? The fusion of Parmenion and Aberdeen has worked well. But Standard Life..?
Hi Al, very good point. I do not see Standard Life as a good fit with Parmenion and with their propensity to go direct to your clients I'd be a bit concerned! Hopefully they will keep well out of it, but I don't think they understand the reasons why advisers use Parmenion (and others like it) instead of Standard Life in the first place.
Hi Julian,
In your neck of the woods the week before last.
I got any clients out of GARS a few years back, thankfully, and if a client has a SL SIPP in their portfolio, my first question is not "Why a SIPP?", but, "Why a Standard Life SIPP?". Nothing against SIPP generally at all in principle, for the right client and if sold appropriately, but usually, SL's are expensive and full of SL's own. Even Bambos Hambi opted out of buying GARS (that'd have been a meeting worth being a fly on the wall at) last year, but then went and bought TM Fulcrum Diversified Core Absolute Return - even worse. If it took him 9 hours just to get his head around it, what chance an adviser, let alone a client? Who was it who ever said "I know, let's hedge nearly 20% of a fund that's supposed to be a bog standard offering for everyone?".
It's one of the few companies I steer clear of, this scandal (and it was scandalous) broke just as I was starting in the sector.
http://www.telegraph.co.uk/finance/personalfinance...
In your neck of the woods the week before last.
I got any clients out of GARS a few years back, thankfully, and if a client has a SL SIPP in their portfolio, my first question is not "Why a SIPP?", but, "Why a Standard Life SIPP?". Nothing against SIPP generally at all in principle, for the right client and if sold appropriately, but usually, SL's are expensive and full of SL's own. Even Bambos Hambi opted out of buying GARS (that'd have been a meeting worth being a fly on the wall at) last year, but then went and bought TM Fulcrum Diversified Core Absolute Return - even worse. If it took him 9 hours just to get his head around it, what chance an adviser, let alone a client? Who was it who ever said "I know, let's hedge nearly 20% of a fund that's supposed to be a bog standard offering for everyone?".
It's one of the few companies I steer clear of, this scandal (and it was scandalous) broke just as I was starting in the sector.
http://www.telegraph.co.uk/finance/personalfinance...
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