Nutmeg ISA lost £500 in just a few weeks of opening

[Z064life]

Hi Guys

Just setup a Nutmeg ISA with the fully managed option, which is supposed to be something like the nutmeg team manage my assets to minimise losses, risk profile 8.

Anyway, I've noticed I've already lost £5-600 in a few weeks of opening the ISA! I understand that ISA is about long term commitment and thus losses along the way are normal, but if I am paying for a fully managed service, shouldn't I be avoiding losses like this?


Thanks!

[anonymous-user]

Z064life said:

if I am paying for a fully managed service, shouldn't I be avoiding losses like this?

No.

Hopefully your short-term £500 loss is on an investment of £20,000 and not on an investment of £1,000

It's harsh, but if you can't stand the heat stay out of the kitchen.

[xeny]

I've no love of Nutmeg, but risk profile 8 implies lots of equities, and possibly quite volatile ones.

It'd be more useful to look at the numbers as a % rather than an absolute amount, but the S&P 500 was down over 2% just on Friday.

Unless the management has time travel, you'll lose money in that circumstance, and selling at the bottom just guarantees you'll miss some of the way up.

[Z064life]

rockin said:

No.

Hopefully your short-term £500 loss is on an investment of £20,000 and not on an investment of £1,000

It's harsh, but if you can't stand the heat stay out of the kitchen.

£15,000 invested. I have seen this sort of lost on my other ISA. I guess I will sit it out.

So 3% loss.

My other ISA has gained in the region of thousands from an initial 10k investment back in 2011, it made its losses along the way, so I will be patient I guess.

[MKA29]

Z064life said:

£15,000 invested. I have seen this sort of lost on my other ISA. I guess I will sit it out.

So 3% loss.

My other ISA has gained in the region of thousands from an initial 10k investment back in 2011, it made its losses along the way, so I will be patient I guess.

Mine has been a rollercoaster, went down 4% but over time has recovered to +10%

I moved my funds out of nutmeg though because they are a shady bunch. Opened my ISA with the knowledge I would be able to transfer in... then one day without warning that option was removed.

[Z064life]

MKA29 said:

Mine has been a rollercoaster, went down 4% but over time has recovered to +10%

I moved my funds out of nutmeg though because they are a shady bunch. Opened my ISA with the knowledge I would be able to transfer in... then one day without warning that option was removed.

Transfer in from another ISA? That's still advertised as a feature? Or shady in another way?

What were the timescales of the loss and then gain? What risk profile?

[GliderRider]

Z064life said:

Hi Guys

Just setup a Nutmeg ISA with the fully managed option, which is supposed to be something like the nutmeg team manage my assets to minimise losses, risk profile 8.

Anyway, I've noticed I've already lost £5-600 in a few weeks of opening the ISA! I understand that ISA is about long term commitment and thus losses along the way are normal, but if I am paying for a fully managed service, shouldn't I be avoiding losses like this?


Thanks!

Z064life, your loss is in the same percentage ball park as mine since Christmas. As the others said, the whole stock market has been dropping since the New Year, and particularly so in the last week. Its a bit of a baptism of fire if you've only just started, but if you hang in there, past history has shown that you will get some good weeks too. A fund manager can only do so much, and if everything is going down they may have decided their holdings are in strong companies and the best they can do is sit tight and wait for confidence to return to the market.

Edited by GliderRider on Monday 5th February 02:39

[iphonedyou]

Z064life said:

Hi Guys

if I am paying for a fully managed service, shouldn't I be avoiding losses like this?

[bitchstewie]

It may have been on here but someone compared it to walking up a hill whilst playing with a yo yo.

It depends exactly when you look but if you walk far enough the overall destination is upwards.

[Juanco20]

Mine has dropped £600 in the last week

Frustrating because it takes so long to build up but the losses seem to be overnight

[98elise]

rockin said:

Z064life said:

if I am paying for a fully managed service, shouldn't I be avoiding losses like this?

No.

Hopefully your short-term £500 loss is on an investment of £20,000 and not on an investment of £1,000

It's harsh, but if you can't stand the heat stay out of the kitchen.

Agreed.No stocks based investment can be guaranteed not to make a loss. My pension and ISA's have all taken a hit since Friday.

Longer term they have done much better than cash investments.

[Basil Hume]

I started investing in equities via an ISA wrapper in 2007, just before the market took a tumble. I invest into funds and am advised.

For reference, my April-March annual returns (excluding contributions) since have been:

Year Investment return
2007 -
2008 -6%
2009 -29%
2010 4%
2011 24%
2012 -6%
2013 19%
2014 5%
2015 11%
2016 3%
2017 13%
2018* 6%* *forecast for 2017/18 based on in-year trend

Someone will be along in a moment to tell you that better returns would have been available than the above, but I hope it helps show an experience of a dip and then a rise nonetheless.

My valuation is down by about 2% in the last week - I'm not remotely bothered now that I have some time behind me.

[sidicks]

Juanco20 said:

Mine has dropped £600 in the last week

Frustrating because it takes so long to build up but the losses seem to be overnight

If the market goes up at the same rate it went down then you’ll recover the loss over (broadly) the same time period!

[R11ysf]

sidicks said:

Juanco20 said:

Mine has dropped £600 in the last week

Frustrating because it takes so long to build up but the losses seem to be overnight

If the market goes up at the same rate it went down then you’ll recover the loss over (broadly) the same time period!

But they don't tend to, sell offs are predominantly more violent and faster than rises. That is just human nature.

[Ari]

Z064life said:

but if I am paying for a fully managed service, shouldn't I be avoiding losses like this?


Thanks!

Only if the service includes a fully functioning crystal ball.

[drainbrain]

ISA Investment For Beginners :

(warning: intellectual academic content)

https://www.youtube.com/watch?v=ktkM2GtaSMk

[fausTVR]

drainbrain said:

ISA Investment For Beginners :

(warning: intellectual academic content)

https://www.youtube.com/watch?v=ktkM2GtaSMk

Too technical for me I'm afraid.

[Yipper]

When will people learn -- just put your money in index trackers, preferably US ones, like the S&P 500, or FTSE All-Share (UK).

Managed funds are just snake oil to part morons from their cash.

Read this, from the world's greatest ever investor and one-time richest man.

https://www.fool.com/retirement/2018/01/08/warren-...

[drainbrain]

fausTVR said:

drainbrain said:

ISA Investment For Beginners :

(warning: intellectual academic content)

https://www.youtube.com/watch?v=ktkM2GtaSMk

Too technical for me I'm afraid.

Ahh, sorry about that. Maybe you'll find this a bit less complex and less obfuscatory:

https://www.youtube.com/watch?v=wK74kZoyEXw

[MKA29]

Z064life said:

Transfer in from another ISA? That's still advertised as a feature? Or shady in another way?

What were the timescales of the loss and then gain? What risk profile?

I wanted to transfer a help to buy ISA into a lifetime ISA. But that option is now history

Opened in May 17, loss until Autumn/early winter, gain til January when I closed the account

I believe risk profile was 7