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This post tells you which passive investment platform is better, Wealthify or Nutmeg. Choosing the wrong platform means paying high fees for poor returns.
I’ve reviewed and compared several brokers since I started investing in 0219. Now, you’ll see how Nutmeg compares to Wealthify.
Wealthify and Nutmeg are two great options for robo-advisor investment platforms. Wealthify’s flat fee structure is easy to understand, but Nutmeg is cheaper.
Wealthify or Nutmeg Comparison Overview
| Broker | Wealthify | Nutmeg |
|---|---|---|
| User ratings | 4.1/5.0 | 3.6/5.0 |
| Notable fees | Platform fee 0.6% Fund fee 0.6%-0.7% | Platform fee 0.25%-0.75% Fund fee 0.07%-0.28% Market spread 0.07% |
| Account types | GIA ISA Junior ISA SIPP | GIA ISA LISA Junior ISA SIPP |
| Number of portfolios | 5 Standard 5 Ethical | 20 Standard (3 types) 5 Ethical |
| Portfolio returns | +0.79% to +12.30% (2020-2021) | +0.1% to +21.3% (2021) |
| Markets | ETFs Mutual funds | ETFs |
| Minimum deposit | £1 | £500 (£100 for LISA and JISA) |
| Investment style | Robo-advisor | Robo-advisor |
| Sign-up bonus | Cashback for pensions | None |
Company Backgrounds
Wealthify and Nutmeg are robo-advisor platforms. Their AI recommends a portfolio based on your investment goals and preferences.
This portfolio isn’t superior to others or losses, though. Investing always has a risk, no matter which platform you use.
Wealthify was founded in 2014 in the UK and is now part of the Aviva group. Read more in my Wealthify review for more details about Wealthify. Nutmeg is also UK based and was founded in 2011. Read more in my Nutmeg review.
User Ratings
Wealthify performs better on Trustpilot than Nutmeg. Wealthify has an average Trustpilot score of 4.0 out of 5.0. Overall, 85% of users rated it as great or excellent.
Nutmeg has an average Trustpilot score of 3.6 out of 5.0. Overall, 80% of users scored it as great or excellent.
Platform Fees
Wealthify charges a fixed platform fee of 0.6%. In addition, there is a fund management fee of 0.6% (standard portfolios) or 0.7% (ethical portfolios).
Nutmeg has a more complex fee structure. How much you will pay depends on your investment and plan.
| Plan | Fully Managed | Smart Alpha | Socially Responsible | Fixed Allocation |
|---|---|---|---|---|
| Nutmeg fees up to £100,000 | 0.75% | 0.75% | 0.75% | 0.45% |
| Nutmeg fees beyond £100,000 | 0.35% | 0.35% | 0.35% | 0.25% |
| Fund cost | 0.20% | 0.25% | 0.28% | 0.22% |
| Market spread | 0.07% | 0.07% | 0.07% | 0.07% |
Nutmeg’s platform fees are higher than Wealthify’s for investments of up to £100,000. For investments beyond £100,000, Nutmeg’s fees are lower than Wealthify.
However, Nutmeg has cheaper fund costs, ranging from 0.20% to 0.28%, compared to the 0.6% fee on Wealthify. Thus, Nutmeg is cheaper overall.
Account Types
Both Nutmeg and Wealthify have a good range of account types:
- General Investment Account (GIA)
- Individual Savings Account (ISA)
- Junior ISA
- Self-invested Personal Pension (SIPP)
In addition, Nutmeg offers a Lifetime ISA. Only a few investment platforms offer a stocks and shares (S&S) LISA as most LISA are cash based. If you want to open a LISA, Nutmeg is your option.
User-friendliness
Wealthify and Nutmeg are beginner investment platforms. You don’t need knowledge about investing before you start.
With Wealthify, you can choose your investment style and theme. Nutmeg asks you a few questions about your preferences.
With both platforms, setting up the initial portfolio is simple. I prefer Wealthify’s design, but the two platforms are on par regarding user-friendliness.
Portfolio Choices
Wealthify offers five portfolios graded by risk:
- Cautious
- Tentative
- Confident
- Ambitious
- Adventurous
Each portfolio is available as standard and ethical. There are a total of ten portfolios.
Nutmeg has four portfolio types. These have five to ten portfolios, each with different risk levels. The portfolio types are:
- Fully managed (10 portfolios)
- Smart Alpha (5 portfolios)
- Socially responsible (10 portfolios)
- Fixed allocation (5 portfolios)
Nutmeg has more portfolio options than Wealthify.
Portfolio Returns
Portfolio returns are difficult to compare between providers. Funds have been established in different years and have different risk levels. Reporting periods also differ between Wealthify and Nutmeg. It is almost like providers intentionally make it difficult to compare portfolios.
The table below aims to compare similar portfolios. Wealthify’s reporting period is 2020-2021, while Nutmeg reports 2021. The comparison uses the standard portfolios for Wealthify and the Fully Managed portfolios for Nutmeg.
| Risk Level | Wealthify Returns | Nutmeg Returns |
|---|---|---|
| Low risk (Cautious/Risk level 1) | 0.79% | 0.1% |
| Medium risk (Confident/Risk level 5) | 7.14% | 7.5% |
| High risk (Adventurous/ Risk level 10) | 12.30% | 19.6% |
Wealthify outperformed Nutmeg at low risk. Nutmeg had higher returns at the highest risk level. Considering the abovementioned limitations, investors looking at low-risk investments may prefer Wealthify. High-risk investors may prefer Nutmeg.
Depositing and Withdrawing
Wealthify has a minimum deposit amount of £1. Wealthify recommends depositing via direct debit, taking up to seven business days. You can also deposit manually, which takes up to three days but is less convenient. Withdrawals take ten days.
With Nutmeg, the minimum deposit amount is £500 or £100 for Junior ISAs/LISAs. You can deposit via open banking, which takes one day. Withdrawing takes three to ten days.
Wealthify has a lower minimum investment amount. This makes it more accessible to new investors.
Pros and Cons
Wealthify Pros and Cons
| Pros | Cons |
|---|---|
| Simple fee structure Managed portfolios ISA and pension available Mobile app available Cashback offer for pension transfers | Can only invest in ETFs and mutual funds Depositing can be inconvenient |
Nutmeg Pros and Cons
| Pros | Cons |
|---|---|
| LISA available Easy to use | High minimum investment amount Cannot buy single shares May not be suitable for ethical investors due to JP Morgan ownership |
Wealthify or Nutmeg Comparison Summary
Wealthify and Nutmeg are competitive robo advisors. Each broker recommends a portfolio based on your preferences. You will not need to have prior investment experience for either platform.
The results of this Wealthify or Nutmeg comparison are as follows:
- User ratings: Wealthify
- Fees: Nutmeg
- Account types: Nutmeg
- User-friendliness: Tie
- Portfolio choices: Nutmeg
- Portfolio returns: Tie
- Depositing and withdrawing: Wealthify
Nutmeg appears to be the better robo advisor. Wealthify only has an edge when it comes to the lowest-risk portfolios.
However, whether you should sign up to Wealthify or Nutmeg also depends on other factors. This includes your preferences and which company you feel more comfortable with.
You may also like my Wealthify vs Moneyfarm comparison.
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