In this article, we compare online investment platforms Nutmeg and Wealthify. We weigh up the merits of investing with each robo-adviser, considering how they can help make managing your money easier.
We assess the key features - including how much they charge, what portfolios they have and how well they have performed - to help you decide which is the best one for you.
Wealthify vs Nutmeg - which is better?
The table below outlines the key features of both Wealthify and Nutmeg.
Key features of Wealthify vs Nutmeg
| Wealthify | Nutmeg Fully Managed | |
| Minimum investment | £1 (£50 for SIPP) | £500 (£100 for Junior ISA and Lifetime ISA) |
| Management Fee | ISA, General Investment Account (GIA) & Junior ISA - 0.60% flat fee
SIPP - 0.60% up to £100,000, then 0.30% for any portion of a portfolio over £100,000 |
Up to £100,000 - 0.75%
Over £100,000 - 0.35% |
| Underlying investment charges (on average) | 0.16% (0.70% for its ethical range) | 0.17% to 0.32% |
| Products | ISA, General Investment Account, Junior ISA and SIPP, Instant access savings account | ISA, General Investment Account, Junior ISA, Lifetime ISA and SIPP |
| Number of portfolios | 5 | 10 |
| Ethical portfolios | 5 | 10 |
| Other options | N/A | Thematic investing |
| Customer reviews (Trustpilot) | 4.0 | 4.1 |
| Money to the Masses offer | Wealthify has an offer where you can earn £25 - £1,000 cashback when you transfer at least £1,000 into a Wealthify Pension. Open to new and existing customers. Offer registration closes on 9th December 2024. Terms and conditions apply, capital at risk. Read our Wealthify review for more information. | No management fees for 12 months (terms and conditions apply) |
Wealthify vs Nutmeg - minimum investment
If you are looking to try out a robo-adviser but don't have a large sum of money available to invest, Wealthify has a minimum investment of just £1 for most of its products, although its SIPP does require a minimum investment of £50. Investors with Nutmeg, meanwhile, will have to put in at least £500 to open an account, although Junior ISAs and Lifetime ISAs only need an initial investment of £100.
Wealthify vs Nutmeg - products
As you would expect, both Nutmeg and Wealthify offer stocks and shares ISAs and general investment accounts (GIAs). They also both have the option of a Junior ISA (JISA), as well as a SIPP, with Nutmeg also having a Lifetime ISA (LISA) in its stable of products. This means that unless you meet the criteria and have the desire to take out a LISA, there is very little difference between Nutmeg and Wealthify in terms of their product range.
To find out more about LISAs, read our article "Lifetime ISAs explained - are they the best way to save?"
Wealthify vs Nutmeg - portfolios
Overall, Nutmeg has much more choice than Wealthify in terms of the number of portfolios it offers, with 10 risk-rated options in its Fully Managed range, compared with 5 for Wealthify. For Nutmeg these are simply numbered from 1 to 10, with 10 representing the highest level of risk with a greater exposure to equities. Wealthify's portfolios are categorised as Cautious, Tentative, Confident, Ambitious and Adventurous. Both Nutmeg and Wealthify offer ethical versions of these portfolios, which we go on to discuss in the next section of this review.
What sets Nutmeg apart from Wealthify is the fact that, in addition to its Fully Managed portfolios, it also has a cheaper range of Fixed Allocation portfolios, as well as a more sophisticated suite in its Smart Alpha offering. In addition, Nutmeg now offers Thematic investing, allowing investors to gain exposure to particular themes, such as technological innovation, which invests in things like robotics, cyber security and AI. For the purposes of this review, we're simply comparing Nutmeg's Fully Managed portfolios with Wealthify's 5 standard portfolios. You can read more about Nutmeg Fixed Allocation, Smart Alpha portfolios (powered by J.P. Morgan Asset Management) and Thematic investing in our independent Nutmeg review.
Wealthify vs Nutmeg - ethical portfolios
Both Nutmeg and Wealthify have ethical portfolios that use a combination of mutual funds and ETFs that tie in with each company's socially responsible investing agenda, as well as replicating the risk levels of their standard portfolios. This means Nutmeg has 10 ethical portfolios, while Wealthify has 5.
The management fees associated with the ethical options from Nutmeg and Wealthify are the same as for their standard portfolios, although the underlying investment costs are slightly higher. Nutmeg's ethical portfolios have an underlying investment cost of around 0.35%, compared with 0.25% for its Fully Managed portfolios, while Wealthify charges 0.70% for its ethical range, compared with 0.16% for its original portfolios.
Wealthify vs Nutmeg - performance
Nutmeg has a 9-year track record for its Fully Managed portfolios, while Wealthify has around 5-years' past performance figures. With the difference in timeframes, as well as the fact Nutmeg has twice as many portfolios, it can be difficult to draw direct comparisons across the two companies. As an overview, the table below shows the performance of each Wealthify portfolio in 2023 alongside the equivalent Nutmeg portfolios.
Comparison of Wealthify and Nutmeg returns 2023
| Wealthify returns 2023 | Nutmeg returns 2023 | |
| Wealthify Cautious vs Nutmeg Portfolio 2 | 4.70% | 6.40% |
| Wealthify Tentative vs Nutmeg Portfolio 3 | 6.20% | 6.90% |
| Wealthify Confident vs Nutmeg Portfolio 5 | 7.80% | 8.20% |
| Wealthify Ambitious vs Nutmeg Portfolio 6 | 9.40% | 8.70% |
| Wealthify Adventurous vs Nutmeg Portfolio 7 | 11.30% | 9.70% |
The results demonstrate some disparity between the relative performance between the platforms, with Wealthify lagging Nutmeg for the most cautious portfolio and middle-of-the-range portfolios. It then generally outperforms its rival for the higher-risk options. It demonstrates once again that past performance isn't always a guide to future performance. For a more detailed look at the performance of Wealthify and Nutmeg, check out our article "Which is the best performing stocks and shares ISA?"
Summary: Wealthify vs Nutmeg
Both Nutmeg and Wealthify represent good options for investors who either don't have the time or experience to take a more active interest in their investment portfolios. They both provide a low cost, user-friendly experience and provide a good range of portfolios to suit all risk appetites. Wealthify's flat-fee structure makes it more cost-effective for those with smaller amounts to invest, while those with an ISA, General Investment Account or Junior ISA pot larger than £100,000 would be better served by Nutmeg's 0.35% management fee.
In terms of additional features and services, Nutmeg has more on offer, with its Fixed Allocation and Smart Alpha portfolios servicing investors with specific needs or interests. It also stands out by offering personal finance advice, which is a paid-for service, as well as a Lifetime ISA.
