Moneyfarm vs Nutmeg vs Wealthify
Moneyfarm vs Nutmeg vs Wealthify. Robo-investing platforms are a great intermediary between savings accounts and choosing your own shares. They will almost certainly offer a much better return than a savings account. I ran a 12 month trial of Moneyfarm and one question I’m asked is why Moneyfarm? The answer is that there is no minimum investment amount and I prefer the fee structure of Moneyfarm. With no minimum investment amount and no management fees on the first £10,000 it’s great. Therefore, I think Moneyfarm is the most appealing, especially for the smaller investor.
How Do They Work?
Setting up an account requires minimal effort on your part. You just answer a series of simple questions to establish your goal. This includes your time horizon and risk appetite. They then choose how to allocate your investment to best match your requirement. Therefore, you don’t need any knowledge of financial markets. They also rebalance the portfolio regularly, as things change in the market.
No minimum investment
£1-£10,000 total investment = No management fee
£10,001-£100,000 total investment = 0.6% annual management fee
Minimum investment £500 plus a minimum of £100 per month until you have £5,000
£500-£24,999 total investment = 0.95% annual management fee
£25,000-£99,999 total investment = 0.75% annual management fee
Minimum investment £250
£250-£14,999 total investment = 0.7% annual management fee
£15,000 to £99,999 total investment = 0.6% annual management fee
All three platforms will pay fees for the investments they buy. However, these fees are just automatically taken from the gain. Therefore, you only pay them the management fee shown.
At the end of my 1 year trial on Moneyfarm, I was 15.24% up. That is a truly impressive gain over a year. When you compare it to savings accounts it’s incredible.
Please also check out Moneyfarm Review & Trial