Nutmeg fully managed portfolio for pension
Options
Yanling
Posts: 124 Forumite
Hi there, Has anyone got an experience with Nutmeg fully managed portfolio for pension? Any comments? Thank you!
0
Comments
-
Do you like paying high charges for an DIY option in a company with poor financials?
Their ongoing charges are higher than an equivalent via an IFA and higher than most other similar DIY options. (its not 0.75% as they say. Its 0.75% plus 0.19% for the investments plus 0.10% for effect of spreads = 1.04%)I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Ok, different opinion. I have part of my pension with Nutmeg, was able to get the first year managed for free so that was a bonus. Reasons why I have Nutmeg:
- I can see performance without having to spend hours putting figures together. My workplace pension is with Legal And General and I can see what I'm invested in but I have no idea how it's doing.
- I have talked to 2 IFA firms. About 4 hours of talking, sending over documents, figures etc and then ... nothing. The second firm came back 3 months later saying they fired the first adviser and they had assigned me a new one but would need to go through discovery again. Yeah. no.
It's done well for me the last year, good returns so I'm not complaining. Might move it at some point but happy for now.
But, as dunstonh says, you can do it all for much cheaper.Debt free as per 22/12/16 -
0 -
Hi, thanks for the help.
the problem is that i do not know investment at all. I have to rely on a fully managed portfolio.
Nutmeg charge is 1.04%, return is about 8%?
HL charge is 1.89%. it shows on their website: £5000 fully managed portfolio for 5 yrs, could earn £625 net return after all charges. is this good earning?0 -
-
Hi, thanks for the help.
the problem is that i do not know investment at all. I have to rely on a fully managed portfolio.
Nutmeg charge is 1.04%, return is about 8%?
HL charge is 1.89%. it shows on their website: £5000 fully managed portfolio for 5 yrs, could earn £625 net return after all charges. is this good earning?
The return is entirely dependent on what happens in the market. 8% is a completely notional rate of return. You could get nothing, or even make a loss. That is the nature of investments.
HL are expensive as a platform and their managed portfolios are overpriced compared to other funds available. I don't know exactly which portfolio you were looking at, but the charge you state is probably without the platform fee of 0.45% added on.
Consider multi-asset funds such as Vanguard LifeStrategy, Blackrock Consensus and HSBC Global Strategy. (N.B. Due to a discount on the Blackrock funds, HL are actually a cheap option for holding that fund). Links below to these range of funds:
Vanguard:https://www.trustnet.com/fund/search/vanguard%20lifestrategy (top 5)
Blackrock: https://www.trustnet.com/fund/search/blackrock%20consensus (top 5)
HSBC:
https://www.trustnet.com/fund/search/hsbc%20global%20strategy (top 4)
Also have a look at different platforms to get an idea of cheaper alternatives to HL (and Nutmeg). Use this link for a comparison table showing all charges: http://monevator.com/compare-uk-cheapest-online-brokers/0 -
Yanling from your previous SIPP thread you seem keen to have a fully managed portfolio but holding a single mixed asset fund inside a SIPP is almost as easy at a significantly lower cost.
I repeat my suggestion to consider holding either HSBC Global Strategy Balanced or Dynamic (if you don't mind ups and downs) fund inside a Cavendish SIPP.
Alex0 -
Hi, thanks for the thought, but I do not know how to rebalance the portfolio, if a fund is dropping the value I do not know how to remove it. xYanling from your previous SIPP thread you seem keen to have a fully managed portfolio but holding a single mixed asset fund inside a SIPP is almost as easy at a significantly lower cost.
I repeat my suggestion to consider holding either HSBC Global Strategy Balanced or Dynamic (if you don't mind ups and downs) fund inside a Cavendish SIPP.
Alex0 -
Hi, thanks for the thought, but I do not know how to rebalance the portfolio, if a fund is dropping the value I do not know how to remove it. x
You don't need to rebalance because you will only hold one fund, so the rebalancing is done by the fund manager.
Rebalancing is to do with the proportion of equities and bonds you hold, not how much the investment is worth.0 -
Also if the stock markets drops this will affect both a fully managed and a fixed allocation portfolio in similar ways. The active management from Nutmeg, etc is not going to protect your investments from going up and down.
Remember it's only a loss if you sell after a fall. If you stick with a well diversified investment it is most likely to recover eventually.
Alex0 -
Cheers!
So I do not need to rebalance by myself. the manager who runs the fund in a portfolio will rebalance it , it is right?0
This discussion has been closed.
Categories
- All Categories
- 343.4K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.8K Spending & Discounts
- 235.5K Work, Benefits & Business
- 608.4K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards