Nutmeg vs Moneyfarm 2022: When it comes to picking a financial advisor, there are a lot of options out there. So how can you figure out which one is best for you? In this Nutmeg vs Moneyfarm comparison, we’ll take a 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 good 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 one 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 in operation since 2012. With a simple online interface, Nutmeg makes it easy for anyone to get started with investing, even if you have little or no investment experience.
What is Moneyfarm?
Moneyfarm is also an online robo-investing platform that has been in operation since 2011. Offering a wide range of portfolio options and tailored investment advice, Moneyfarm caters to both experienced investors as well as those just starting out. 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 both provide stock and share ISAs, GIAs, and a SIPP. However, one the other side Nutmeg goes a little further by adding another option of LISA and JISA in other words lifetime ISA and junior ISA. LISA and JISA may be ideal for individuals searching for alternative investment options. While Moneyfarm is currently it is 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. While the fixed allocation portfolios offer five risk categories. Lastly, socially responsible investing portfolio lets you invest in assets and ethical funds. It also offers 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. On the basis of 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 few questions.
Overall, Nutmeg offers a wider 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 moves with different investment slabs. The annual fee charge is 0.75% on investments up to £10,000. But as the investment increase the annual fee drops down, like if you invest £100,000 the annual fee cost will be 0.57%.
On the other side, you will pay an annual fee of 0.75% if you are going with Nutmeg’s fully managed or socially managed portfolios. However, when you invest more than £100,000, annual fee drops to 0.35%. This changes to just 0.45% as standard fee for 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 to other because they have different portfolio models and risk measurements. But its really important to check on past performance, therefore we look at mid-range risk portfolios.
Nutmeg’s top-performing mid-range portfolios didnot performed well against Moneyfarm’s top-performing mid-range portfolios. In addition, keep in mind that past results are never assurance of future outcomes.
However, Nutmeg’s will most likely appeal to both 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. This implies that, if one or both of the companies went bankrupt, you would be compensated for money you had invested for up to £85,000.
Nutmeg vs Moneyfarm: Which One right for Sign-Up?
When deciding whether Nutmeg or Moneyfarm is right 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 not sure 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 in mind (e.g. saving for a house deposit) and are comfortable with 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 fees may make it the more cost-effective option in the long run. However, if you have a larger 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 as well as your long-term plans, and then choose the option that best suits your needs. Good luck!
So which one is right for you? While both Nutmeg and Moneyfarm offer a wealth of features and benefits, it ultimately comes down to what your individual needs are. If you’re looking for a simple, user-friendly platform to get started with investing, Nutmeg may be the better option. However, if you’re looking for tailored investment advice and a wider range of portfolio options, Moneyfarm may be a better fit.
No matter which robo-advisor you choose, remember to always do your own research before making any investment decisions. And now, let’s take a closer look at each platform in our Nutmeg vs Moneyfarm comparison.