Nutmeg Stocks & Shares ISA

Westy1966

Hi.

Two years ago I invested 20K with Nutmeg.

Up until February 2023 I didn't touch the account and as expected the 'Returns' went up and down.

In February 2023 I had to take out £600 for an emergency.

At the time my account said my account had about £20,600.

I thought taking out the £600 would then still leave my account at 20K but instead it dropped and said the my investment was now £19,400 (£20,000 minus the £600)

That confuses me. 

Basically it seems the plus £600 I had made didn't count, the £600 was taken out of my original investment (£20,000) and not my return total (£20,600) hence why my investment is now £19,400?

So that means I've lost money.

Since February my return (now £19,400) hasn't even reached my original £20K.

Today my total return is £19,491. If I close my account will I receive the whole £19,491?

Seems pointless leaving my money with Nutmeg.

Albermarle

Presumably the investments went down about £600 around about the time you took the money out. I can not see any other explanation.

Investing is a long term game, with a minimum recommended time scale of 5 years, preferably 10 years +.
This is to ride out the short term ups and downs. Pulling out after a year or two because we have gone through a down period is a classic beginners mistake.

It could be that Nutmeg investments have fared worse ( or better) than others, but to be back at the value you started with in May 2021 is typical of many investments.

Linton

But you know that investment values go up and down.  Perhaps a down period happened around the same time as your withdrawal. 

Which Investment Style/portfolio are you using? Many funds are down over the past 2 years.  Anything that happens over a 2 year period is pretty random.  Investing should be for the long term, say 15 years+.

Westy1966

Thanks for your replies.
I have the Nutmeg app so look daily. Prior to the Ukraine my pot topped £22,000. Obviously because of this it dropped significantly.
On the day I withdrew the £600 it clearly said my pot was £20,600 and I wouldn't of withdrawn if this wasn't the case.
Someone mentioned the word 'crystallized' but I have no idea what that is or whether that is relevant.

dunstonh

Today my total return is £19,491. If I close my account will I receive the whole £19,491?

No.  You will get the price at the point the units are sold.  That could be lower or higher.

Seems pointless leaving my money with Nutmeg.

Why?
An economic cycle is around 15 years.  Negative years average 1 in 5.     You have been invested for two years.  One of which was a negative.   The problem isn't Nutmeg.  it is you.   i.e. you need to understand investing better.

Linton

It is very surprising that the amount invested after 2 years was the same as your contribution to 1the nearest 1p.  Either an amazing coincidence or could you have looked at the field that said something like "Total contribution"?  Without seeing what you saw it's impossible to say.  But overall there is no evidence that your Nutmeg investment performed very differently to anything else you could have chosen.

Westy1966

OK, thanks Linton