Nutmeg online investment - opinions?
Discussion
Anyone still doing this? I'm on risk profile 7/10 and have had some money in since end of March.
It was actually a little alarming that within a few weeks I had lost about 1.7% of my account. It seems that there's been a few good days for the fund and after about 2 months am now +1.4%. I'm considering putting a bit more in but still waiting to be convinced a bit more by some stable growth.
Or maybe I should chuck in some money and forget about it for a few years.
It was actually a little alarming that within a few weeks I had lost about 1.7% of my account. It seems that there's been a few good days for the fund and after about 2 months am now +1.4%. I'm considering putting a bit more in but still waiting to be convinced a bit more by some stable growth.
Or maybe I should chuck in some money and forget about it for a few years.
Anyone judging these services purely on performance (particularly over a short time frame) is kind of missing the point. These services simply provide a route to market, by suggesting a sensible spread of asset allocation based on your profile. Performance will largely be dicated by the performance of the underlying markets tracked, it has little to do with the platform being good or bad.
If you take a high risk approach you will have a higher exposure to equities, including overseas equities. If you take a lower risk approach you will have a higher exposure towards corproate bonds. Equities, as a rule of tumb, tend to deliver better long term returns but with more volatility. So if you invest in equities, and then markets fall, you will lose money if you hold tracker funds (and vice versa).
If you take a high risk approach you will have a higher exposure to equities, including overseas equities. If you take a lower risk approach you will have a higher exposure towards corproate bonds. Equities, as a rule of tumb, tend to deliver better long term returns but with more volatility. So if you invest in equities, and then markets fall, you will lose money if you hold tracker funds (and vice versa).
limpsfield said:
g4ry13 said:
Or maybe I should chuck in some money and forget about it for a few years.
Isn't that the point? These are all investment vehicles/wrappers not short term trading instruments. For me the decision would be what else would I do with the money over an x year time horizon? If Nutmeg is unable to produce something consistent and which convinces me that it's balanced then I will look elsewhere for investments.
I'm with Moneyfarm. Same idea as Nutmeg, but cheaper for anything £10k and has an Android app (which was a big selling point!)
Set it up as a bit of an experiment, as I work in FS and was interested in what the FinTechs offer compared to the big players.
Highest risk portfolio, up 2.05% since end of March when I started (3 year horizon). Historic performance here.
Impressed with the interface and hassle free experience. Concept is spot on - hopefully same can be said for their investment strategy!
Set it up as a bit of an experiment, as I work in FS and was interested in what the FinTechs offer compared to the big players.
Highest risk portfolio, up 2.05% since end of March when I started (3 year horizon). Historic performance here.
Impressed with the interface and hassle free experience. Concept is spot on - hopefully same can be said for their investment strategy!
I would have been one of nutmeg's earlier customers but have just moved out. Their underperformance last year was significant, in effect they missed a once in a life time opportunity by being wrongly positioned at the time of brexit and, to a lesser extent the Trump rally. I hope they get it right but the tech without the investment content being right is like having a shiny car with no engine....
williaa68 said:
I would have been one of nutmeg's earlier customers but have just moved out. Their underperformance last year was significant, in effect they missed a once in a life time opportunity by being wrongly positioned at the time of brexit and, to a lesser extent the Trump rally. I hope they get it right but the tech without the investment content being right is like having a shiny car with no engine....
So who are you with now Willaa68? Ta
It's almost 9 months to the day since I first deposited in Nutmeg. It started off in the negative for the first few weeks but then turned positive and hasn't gone back into the negative.
The returns haven't been astonishing but currently up 5.17% since March. I'll leave the money there and see how it goes next year.
The returns haven't been astonishing but currently up 5.17% since March. I'll leave the money there and see how it goes next year.
That seems pretty reasonable. They say timing is everything and if I recall, in April this year the main indices shat themselves so if you’d waited a couple of weeks you would have very different annual performance. But then that is why many people drip feed in over time so as to smooth out that risk.
CaptainSensib1e said:
Anyone judging these services purely on performance (particularly over a short time frame) is kind of missing the point. These services simply provide a route to market, by suggesting a sensible spread of asset allocation based on your profile. Performance will largely be dicated by the performance of the underlying markets tracked, it has little to do with the platform being good or bad.
If you go for (using Nutmeg as an example) their fixed allocation portfolio, would tend to agree (although it seems very skewed towards UK holdings (as others also seem to do), maybe this is because in the absence of physical handholding, the investor may get spooked by non-GBP assets fluctuating when currency moves). The more expensive fully managed portfolio seems as though they are using tactical asset allocation, so would question your statement.CaptainSensib1e said:
If you take a lower risk approach you will have a higher exposure towards corproate bonds.
And/or Government bonds (and maybe property).As pointed out on a previous thread - would be useful to see how it performs compared to something like Vanguard LS, or for less of a UK skew, a global equity tracker married with a global bond fund (with annual rebalancing)
DonkeyApple said:
That seems pretty reasonable. They say timing is everything and if I recall, in April this year the main indices shat themselves so if you’d waited a couple of weeks you would have very different annual performance. But then that is why many people drip feed in over time so as to smooth out that risk.
I'm on a risk profile of 7/10. I first started off with some money and when I saw that it probably wasn't going to lose me a large % I put in more a few weeks later so I had double the amount I started with.
Initially I thought i'd change my risk profile depending on market volatility but have taken a more passive approach and not touched it.
I'm on risk profile 7/10 and this year it's returned 6.1% net of fees.
(I actually think it's slightly higher than that, but not sure how they're calculating the returns as I've added to the balance over the year).
Personally I like it as:
- 6.1% ain't bad
- It has managed to smooth out most of the losses on the main indices - something in the algorithm seems to be limiting the downside exposure.
- It's dead easy to use. That has value to me.
(I actually think it's slightly higher than that, but not sure how they're calculating the returns as I've added to the balance over the year).
Personally I like it as:
- 6.1% ain't bad
- It has managed to smooth out most of the losses on the main indices - something in the algorithm seems to be limiting the downside exposure.
- It's dead easy to use. That has value to me.
brickwall said:
I'm on risk profile 7/10 and this year it's returned 6.1% net of fees.
(I actually think it's slightly higher than that, but not sure how they're calculating the returns as I've added to the balance over the year).
Personally I like it as:
- 6.1% ain't bad
- It has managed to smooth out most of the losses on the main indices - something in the algorithm seems to be limiting the downside exposure.
- It's dead easy to use. That has value to me.
What losses on the main indices are you referring to?(I actually think it's slightly higher than that, but not sure how they're calculating the returns as I've added to the balance over the year).
Personally I like it as:
- 6.1% ain't bad
- It has managed to smooth out most of the losses on the main indices - something in the algorithm seems to be limiting the downside exposure.
- It's dead easy to use. That has value to me.
The global market doesn't seem too volatile (even less so when combined with equivalent global bond fund)
http://www.hl.co.uk/funds/fund-discounts,-prices--...
BanzaiMan said:
liam1986 said:
Another happy nutmeg customer here.
Put some money in last December. Up 12.5% so far, that's on a 8/10 risk profile.
What are you benchmarking against to determine how happy you are?Put some money in last December. Up 12.5% so far, that's on a 8/10 risk profile.
Forgive me, for giving straight forward answer.
Please enlighten me as to why an investment that has returned 12+% in 12 months isn't something to be happy about.
I have withdrawn some money too. The funds were in my bank account the next working day.
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