Nutmeg fees (or other S&S platforms)

JonSalji

When making an investment, is it more efficient fees-wise to put in a lump sum or drip feed?

Presumably with the former you get charge the fees once, but drip feeding meant multiple lots of transaction fees?

Just thinking of putting in small bits of money as and when… but not sure if it’s better to save these “loose change” and then make one large pay in every 6 months. 

eskbanker

It'll depend on what you're investing in as well as which platform you use, as the pricing models do vary.

dunstonh

First thing is that Nutmeg is not a platform.  

Presumably with the former you get charge the fees once, but drip feeding meant multiple lots of transaction fees?

Most platforms or providers don't charge initial fees.    If you are using assets which have dealing costs then it will cost more. If you are using assets that dont have dealing charges then it wont.

JonSalji

Assuming it’s the fully managed one?

Will I be charged more transactional fees if I do 10x£30 pay ins, or a lump of £300 at one go?

I know the annual fee will be the same, but what about the cost for then to make the investment?

dunstonh

Will I be charged more transactional fees if I do 10x£30 pay ins, or a lump of £300 at one go?

I didnt think Nutmeg had dealing charges.   What have they told you that makes you think they do?

JonSalji

To be honest, I have no idea either! I just read that dealing charges are a thing, so assumed I will need to pay them. 

Back to reading…… 😅

Beddie

JonSalji said:

To be honest, I have no idea either! I just read that dealing charges are a thing, so assumed I will need to pay them. 

Back to reading…… 😅

No dealing charges at Nutmeg, so you can chuck money in as often or little as you like!

gm0

There are various adviser (if used and as negotiated), platform and fund manager fees.
It's horses for courses i.e. your pot size, chosen assets and behaviour. 

You need to take an added up view of all these charges based on *your* needs and behaviour. 

How much you have in the portfolio(s) to be held at that company. 
How much you invest each year (and how often),
How often you rebalance or trade beyond regular saving events. 
What *types* of investments (funds, trusts, etfs, shares) you will hold as platform charges may vary across these.
How much (if any) cash will be inside the tax wrappers (pensions, isas).

With that PoV or a rough and ready working approximation you can estimate the differing costs of a couple of companies with a different pricelist

What is an optimal choice for one of us will not be so for someone else. 

e.g. Fidelity is a happy choice for *me* with low holding costs for some types of investment at my portfolio size. 
And trading costs - which are higher and would deter small monthly trades vs some competitors - don't worry me - as I don't buy monthly nor do I churn the portfolio much.  So the balance of *their* price list suits my intended use well.  Where another with cheaper trades but higher annual portfolio holding costs would not.

Suggest you try the Monevator platform selection guide (on that blog). 
There was a MSE forum member spreadsheet as well but I have not seen that spreadsheet mentioned recently