How to start investing: A review of Nutmeg

Published by Clara on

Disclaimer – I am by no means an authority on investing, please do not treat this article as financial advice. I am simply sharing my knowledge and personal experience. Remember, as with all investments, your capital is at risk. Your investment can go up or down, and you may end up getting back less than you put in.


When you’re setting up home, saving money can feel like an impossible task. After shelling out for rent, bills, shopping and petrol, it’s tempting to blow what might be left on having fun. But once you’ve got to grips with these monthly expenses – and set aside some money for emergencies – it’s perhaps a good time to think about investing.

stacks of coins increase in size with a green shoot growing from each stack to represent investment

What is investing?

Investing is where you set aside some money into a resource (e.g. a business, property or financial scheme) to generate an income or a profit. Whether or not you are ready to invest depends on your savings goals.

If your goal is to save for something like a wedding, stick to a cash savings account. The stock market can go up and down – and investing for anything less than five years could mean losing money.

Consider investing if you want to save for something more long-term, say your child’s future wedding, or your retirement. Over many years, the stock market can perform better than cash, giving you greater rewards on the money you invest for the long-term.

Experts recommend having at least three months’ wages saved in an instant access savings account so that you can pay for food, bills and other essentials in an emergency. The only time you should not invest is if you have debts to pay or if you have more important things to do with your money.

Check out the Money Advice Service for more information about savings and investments to see which is the right option for you.

Pink piggy bank

What is Nutmeg?

Nutmeg is a UK-based online investment company (or robo-advisor), ideal for those who want to invest but don’t want the responsibility of making investment decisions.

When opening a Nutmeg account, it will ask you to complete a survey to help you decide on an investment platform. This will include questions regarding your attitude to taking risks, your investment goals, and how much you can afford to invest.

Once you’ve decided on an investment platform, you will be prompted to select a goal, timeframe, and how much you want to invest. You will also be asked to select a risk level, which will reveal how much you could expect to receive in return.

When investing with Nutmeg, you will be given the option of a fully managed account or a socially responsible account. If you select the fully-managed option, your money will be tracked and changed by Nutmeg’s investment team. The socially responsible option is also fully managed but enables you to invest in companies that do business fairly and progressively.

There are annual fees associated with both options – get to know what these are before you open an account.

dice with letters shaped like a crossword puzzle. The words spell out profit, loss and risk

My experience so far…

I decided to invest to save money for retirement. Having recently turned 30, and feeling more settled in terms of how I handle my monthly outgoings, it felt like the right time.

When I registered for an account with Nutmeg, I selected a Stocks and Shares ISA to give me the flexibility of being able to withdraw my money should I need to do so. However, you can also choose from a General Investment Account, a Lifetime ISA, or a Personal Pension.

I found the setup process simple and reassuring. After being taken through a series of questions about my investment goals, how much I wanted to save and for how long, I selected an investment style (socially responsible) and set my preferred risk/reward balance.

Nutmeg then showed me a clear projection of how my investment was likely to perform, including its projected value after 12 months and 30 years (my selected timeframe), as well as the associated annual costs. The projection was easy to read and gave me the confidence to continue with my investment.

The process of setting up an account was simple. I had the option to invest my money straight away or drip-feed it into the stock market over time, helping me to feel in control of my investment decision.

Since joining Nutmeg, I have seen steady growth in my investment – more so than I feel it would have grown had it been sitting in a regular savings account. As the months have gone by, I’ve learnt more about the stock market and even found the confidence to start making monthly contributions.

I have found Nutmeg flexible and easy-to-use. There are no setup or exit fees, nor are there any hidden costs. There’s also a handy app that allows me to view my investment at a glance. On the app, I can make payments, amend my risk level and even live chat with a Nutmeg advisor.

woman on a laptop drinking tea from a mug

Research, research, research…

I did a lot of research before deciding to invest and would advise anyone thinking about investing to do the same. There are many different robo-platforms to choose from, but Nutmeg was ideal for me because I only had a small amount to invest and it was convenient. I also didn’t want the responsibility of having to manage my account.

If you’d like to know more about Nutmeg, or to learn about some of the other leading investment platforms, check out Money Saving Expert’s post on Stocks & Shares ISAs.

If you’re interested in joining Nutmeg and you do so via this referral link, you will receive six months of no Nutmeg management fees. Always remember to read the terms and conditions before opening an account.


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