Nutmeg vs. Moneyfarm 2022: When it comes to picking a financial advisor, there are many options out there. So how can you figure out which one is best for you? In this Nutmeg vs. Moneyfarm comparison, we’ll look at two of the most popular Robo-advisors in the UK to help you make an informed decision.
It’s no secret that the world of investing can be a complicated one. But with the help of a reasonable investment advisor, it doesn’t have to be. So, which investment advisor should you choose? Nutmeg or Moneyfarm? Both offer competitive rates and diverse portfolios, but which is right for you? Read on to find out!
What is Nutmeg?
Nutmeg is an online robo-investing platform that offers a range of portfolio options and has been operating since 2012. With a simple online interface, Nutmeg makes it easy for anyone to start investing, even if you have little or no investment experience.
What is Moneyfarm?
Moneyfarm is also an online robo-investing platform that has been operating since 2011. Offering a wide range of portfolio options and tailored investment advice, Moneyfarm caters to experienced investors and those just starting. Whether you’re looking for long-term growth or regular income, Moneyfarm can help you meet your financial goals.
Products Offering: MoneyFarm vs. Nutmeg
Moneyfarm and Nutmeg provide stock and share ISAs, GIAs, and a SIPP. However, on the other side, Nutmeg goes a little further by adding another option of LISA and JISA, namely, lifetime ISA and junior ISA. LISA and JISA may be ideal for individuals searching for alternative investment options. While Moneyfarm is currently working on releasing a JISA but the date is unknown.
Portfolios Available: Nutmeg vs. MoneyFarm
You may choose from three distinct types of portfolios when using Nutmeg. Namely fully managed, fixed allocation, and socially responsible. The fully managed option lets you select ten risk levels ranging from low to high. In contrast, fixed allocation portfolios offer five risk categories. Lastly, a socially responsible portfolio lets you invest in assets and ethical funds. It also provides ten risk levels from high to low.
On the other hand, Moneyfarm takes a different approach. The firm picks a portfolio that reflects your risk tolerance. Based on a brief question answer, the system determines which portfolio best suits your investment attitude. If you want a deep look at available portfolio options, you must register and answer a few questions.
Overall, Nutmeg offers a broader range of options than Moneyfarm, with ten portfolios in its Fully Managed category, versus Moneyfarm offering only seven. Furthermore, Nutmeg has alternatives in the form of its managed Smart Alpha portfolios and inexpensive Fixed Allocation funds.
Fees and Pricing: MoneyFarm Vs. Nutmeg
Fees for Moneyfarm move with different investment slabs. The annual fee charge is 0.75% on investments up to £10,000. But as the investment increases, the annual fee drops, and if you invest £100,000, the yearly fee cost will be 0.57%.
On the other side, you will pay an annual fee of 0.75% if you go with Nutmeg’s fully managed or socially managed portfolios. However, when you invest more than £100,000, the yearly price drops to 0.35%. This changes to just 0.45% as the standard fee for a fixed allocation portfolio. While if you invest more than £100,000, it changes to 0.25%.
Past Performance Comparison: Nutmeg vs. MoneyFarm
It’s difficult to compare one platform because they have different portfolio models and risk measurements. But it’s imperative to check on past performance. Therefore, we look at mid-range risk portfolios.
Nutmeg’s top-performing mid-range portfolios did not perform well against Moneyfarm’s top-performing mid-range portfolios. In addition, keep in mind that past results are never an assurance of future outcomes.
However, Nutmeg’s will most likely appeal to novice and seasoned investors. There is no denying that Nutmeg is worse than Moneyfarm in terms of overall performance. It all depends on market conditions.
Is it Safe to Invest with MoneyFarm or Nutmeg?
Yes, both Nutmeg and Moneyfarm are covered by FSCS. Implies that if anyone went bankrupt, you would be compensated up to £85,000 for your losses.
Nutmeg vs. Moneyfarm: Which One is right for Sign-Up?
When deciding whether Nutmeg or Moneyfarm is suitable for you, there are a few key factors to consider. First, think about your investment goals. Nutmeg offers a wide range of portfolio options, so if you’re unsure what you want to invest in or how much risk you’re comfortable with, it could be a good option. However, if you have a specific goal (e.g., saving for a house deposit) and are comfortable taking on more risk, then Moneyfarm’s flat fees might be a better choice.
Another important consideration is the size of your portfolio. Nutmeg charges an annual management fee that varies depending on how much you have invested, whereas Moneyfarm charges a flat fee regardless of your portfolio size. So if you only have a small amount to invest, Nutmeg’s lower costs may make it the more cost-effective option in the long run. However, if you have a more significant investment or plan to add more funds over time, then Moneyfarm’s flat fees could be easier to manage in the long run.
Ultimately, the best way to decide between Nutmeg and Moneyfarm is to do your research and compare their features and pricing. Consider both your current investment goals and your long-term plans, and then choose the option that best suits your needs. Good luck!
Conclusion
So which one is right for you? While both Nutmeg and Moneyfarm offer a wealth of features and benefits, it ultimately comes down to your individual needs. Nutmeg may be the better option if you’re looking for a simple, user-friendly platform to get started with investing. However, if you’re looking for tailored investment advice and a more comprehensive range of portfolio options, Moneyfarm may be a better fit.
