s&s isa newbie

Alexland

Well according to their Companies House submissions Nutmeg are an unprofitable company reliant on their backers for regular capital injections to fund their operations. There is a question on if they will be able to grow sufficient assets under management to cover their run costs.

A downturn in the stock market won't help them as inexperienced investors might crystallise losses by withdrawing and new investors might find it less attractive.

Don't worry I am sure your money is perfectly safe in their hands as they should be keeping it separate to their business accounts. Even if they are not then you are covered up to £50k by FSCS. Also I rate Shaun Port's selection of fixed allocation ETFs.

If I was very worried I would bother doing the HL transfer paperwork a bit quicker. I am sure the Nutmeg customer base would be attractive to another market participant if they hit serious trouble.

Alex

lolamancity

Eeeek i hope you're right, if it were just a S&S ISA i wouldn't be alarmed, but a lifetime ISA on their product with the highest risk level makes me a bit more nervous!

Eco_Miser

lolamancity wrote: »

Eeeek i hope you're right, if it were just a S&S ISA i wouldn't be alarmed, but a lifetime ISA on their product with the highest risk level makes me a bit more nervous!

What difference does lifetime rather than S&S make? If they do close down your ISA, whether L or S&S, will be transferred to another provider and carry on.
Their highest risk level product? Unless they are investing some of it in themselves, their own financial health should have no bearing on the performance of their product.

Alexland

The investment risk level is about the ETF mix of stocks and bonds not about the stability of Nutmeg as a provider.