Nutmeg - £200 sign-up bonus - vs. Vanguard?

bowlhead99

Ignoring the investment risk /counterparty risk of the ETFs they acquire for you, I guess you could still have tax risk if there was some sort of collapse in nutmeg's fortunes.

For example, say you bought a Vanguard multi-asset investment fund on a big platform like HL, while your twin brother put the same amount in a Nutmeg non-tax-wrapper account. Then in a couple of years time both Nutmeg and HL decide to cease trading and you and your twin will have to get your respective monies back to invest elsewhere.

With HL you have bought an off-the-shelf shelf investment fund which many rival find platforms distribute. Your ten Vanguard OEIC shares can be transferred to a different provider like Halifax or AJBell or whomever who will simply take over the administration of them and you'll still be the owner.

Whereas with your twin brother's investment in the Nutmeg scheme there is no agreed mechanism to allow him to withdraw his portion of the actual underlying ETF shares in an orderly fashion and have Halifax or AJBell hold them for him. They can be liquidated and he can take the cash over to his new provider. But as part of that he had exited his investments which can't be done without CGT implications if you're not inside a tax wrapper.

For someone investing £2k over a year or two in a GIA, you are not going to make significant profits and have a CGT effect if you don't already have other gains that year approaching or exceeding the annual exemption. But if you had tens of thousands and your provider went out of business or was closing down (whether in an orderly or disorderly fashion), it can be a big hassle, which is why people might point to using fund products from managers with hundreds of billions under management, via fund platforms that have tens of billions under administration with a couple of decades of operating history.

As such, there are sometimes credible reasons to avoid unproven providers. It is something of a barrier to entry of new participants in a busy market. Which is why they give you freebies for being an "early adopter".

buyhighselllow

Decided to have a bite of this, gone for a riskier profile and drip feed in the 100 on top of the 800 lump sum, 10 year plus time-frame..

Coveredinbees!!!!

So in a nut shell put in the minimum amount at a low risk, get the bonus and transfer out at the earliest opportunity?

LesLittle

stphnstevey wrote: »

Can you quantify your gains?

Looks like it has recovered a little of late, currently at 1.5% on a 4/10 risk initial £5k investment this time last year. Has been negative as recently as Feb when the stock market struggled.

Alexland

LesLittle wrote: »

Looks like it has recovered a little of late, currently at 1.5% on a 4/10 risk initial £5k investment this time last year. Has been negative as recently as Feb when the stock market struggled.

The performance you have experienced is not unique to Nutmeg. If you had invested in mixed assets anywhere with that risk profile you would have seen losses on you bonds for most of the year offset by growth in your light equity allocation finished by an overall drop in asset prices during the correction. Market conditions have not been rewarding cautious investors.

Also as you risk is measured out of 10 then I assume you are in their Managed Portfolios which are more expensive than their Fixed Allocation Portfolios (which have 5 risk levels) and not obviously better in any way that Nutmeg can demonstrate. That won't help.

Alex

dibatyjo

Can anyone help please? I invested in the Nutmeg scheme (£200 bonus) as mentioned in an MSE email. I believe I followed all the criteria to qualify, but have been given no more information. When I telephoned Nutmeg they said I should have received an email from MSE confirming the bonus. I have heard nothing - do I take it that I have missed out?

Alexland

dibatyjo wrote: »

Can anyone help please? I invested in the Nutmeg scheme (£200 bonus) as mentioned in an MSE email. I believe I followed all the criteria to qualify, but have been given no more information. When I telephoned Nutmeg they said I should have received an email from MSE confirming the bonus. I have heard nothing - do I take it that I have missed out?

I would suggest you send them a nice Nutmail (ie in writing) saying you did not receive that email and ask them to investigate on their side. Even if you didn't qualify they might look at the situation and give you a signup bonus anyway as they will be keen to reward / retain new customers.

Alex.

Nardge

Good afternoon,

As for me, I was fortunate to be in time for one of the 1000 Nutmeg £200 Cashback links.

I subsequently took on board the discussion both here and in previous Nutmeg threads, as per Masonic's heads-up.

As a result I'll have £800 invested in a General Investment Account (GIA) from tomorrow.
The Risk level is currently set to 'Cautious'.

The above choices will permit me to 'cream off' the £200 without precluding myself from being able to invest by way of ISA in a cheaper, more diverse 'Do It For Me' platform this tax year or next (or even 'DIY' platform if I chose to do so), and at minimal risk to my Nutmeg Capital.

If mistaken, or you'd advise a different Nutmeg risk-level (Cautious, Steady, Balanced, Growth, Adventurous),
I'd be very grateful for your thoughts!

With Kind Regards

greendoor665

Thank you for bumping this one year old thread. I was about to go home and sign up to nutmeg to get that juicy £200 bonus until I checked the date!

Nardge

greendoor665 wrote: »

Thank you for bumping this one year old thread. I was about to go home and sign up to nutmeg to get that juicy £200 bonus until I checked the date!

I'm sorry that you didn't get one in time, they were all gone by Wed 27 Feb of last week 1.30PM.
I'd only just clicked through that same morning...

Hopefully there'll be other Roboinvestments released in time, though if you haven't registered for MSE's weekly e-mail, I would do so now, and keep your eyes wide-open for the red-lettered headlines...
That's how I managed to get in on the act.

With Kind Regards