Nutmeg Investment Costs example

JDent100

Daft question but if I were to invest £20k into the Nutmeg stocks & shares ISA do-it-for-me platform, whilst the first year is free there is an average platform cost of 0.6% (using the 0.45 - 0.75 range) plus an annual fund management charge 0.24% (using the 0.17 - 0.31 range) -  so can i assume that in the second year cost to me taken out of the 20k investment might be 20,000 x (0.6% + 0.24%) = £168?

Malthusian

Are you sure about that first year free thing? There's no mention of it on their fees page or front page.

It would only be 0.6% if you divided it 50/50 between the "Fixed Allocation" structure and any combination of the three others. Which seems a bit arbitrary.

Your algebra is correct but I'm not sure you're looking at the right figures. The fund costs are 0.14% - 0.32% according to Nutmeg's fees page and the average of those figures isn't really important, what matters is the fund costs for the approach you would be investing in.

barnstar2077

If you want simple and cheap then one of the Vanguard Lifestrategy funds on the Vanguard website would be an option.  0.15% platform and 0.22% fund cost.  If you want 100% equities then their FTSE global all cap fund may be a better option.  I am using my phone or I would paste some links, but if you type vanguard lifestrategy into YouTube / google I am sure you will find what you need.  Cheaper than Nutmeg and no harder to use than online banking.  just pick your risk / volatilty level and invest. 

barnstar2077

I should add, I use their S&S ISA and the FTSE global all cap fund myself.

Albermarle

Are you sure about that first year free thing? 

Only if you apply via this link 

Nutmeg Review - are they the right investment for you? - Money To The Masses

Also I presume it is only the platform cost and not the fund charge .