Nutmeg: A New Approach to Investing

We don't have much (read next to none) spare cash to play with, but we do try to put a bit away each month for the girls' future.  Even if tuition fees come down it is still going to cost a small fortune for them to go through university, so we are trying our best to put a contribution together.  But I'm sorry to say that, after having my fingers burnt with a misguided investment a few years ago, the money is in a basic cash ISA.  I know it could be working harder, a lot harder in the current financial climate, but I'm rather put off by the huge fees and the rather inflexible approach most stocks and shares ISAs offer.  But Nutmeg, a new online investment company I recently heard about is different.

Nutmeg want to make investing more accessible for ordinary people.  Not those investing thousands and thousands, not those wanting to actively manage their own investment portfolio, but regular ordinary people who want to tuck some money away and have it work hard and - hopefully - GROW.

Nutmeg launched in 2011 and offers a whole new way to invest.  Its simple online management is suitable for inexperienced investors as it is gives you a chance to try things out before committing any money.  It also offers low fees (0.3 to 1%) and an easy to use online platform.  There is the choice to invest in a basic savings account, a NISA or a pension, with a minimum investment of a £1,000 lump sum, plus a monthly £50 contribution if your total pot is less than £5K.  Long-term investment is obviously preferable, but you can withdraw as much of your money as you like at any time*, there are no lock in clauses.

Before investing, have a play around with the sample portfolio tool, find out your attitude to risk, and see what potential your imaginary portfolio might have.  With ten investment portfolios available, each matched to a specific approach to risk, there is sure to be one to suit your needs and attitudes.  Whether you can cope with relatively high risk or you prefer a more stable, predictable path, have a look through each fund's performance since inception to check it meets your needs.  The transparency this offers really appeals to me, as so often financial advisers and the like try to pretend this sort of information is beyond the ken of us mere mortals.

Here's how they work:

All in all the site seems incredibly easy to use, completely transparent, and with low fees that will potentially make a big difference in the long-term.  With its easy approach to investing, value for money, and time efficient approach, this is 21st century saving - for everyone.

* Money withdrawals when it’s time to rebalance your portfolio (every 14 days) are completely free.