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Started by helbel on Mar 20, 2018 1:10:31 PM
Roboinvesting

Does anyone use one of the robo-investment firms? e.g. Nutmeg, Wealthify, Moneyfarm (there are others)

If yes what has your experience been?

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helbel - 04 May 2018 21:53:05 (#1 of 35)

So in the absence of anyone here being able to advise me on good/bad experiences I've gone ahead and invested money with Nutmeg as they have the longest track record in the U.K.

Set up was very easy, though it is simple to skew the questionnaire that determines your risk profile. I knew what level of risk I wanted and answered accordingly.

Money takes a few days to go through via debit card, much quicker from bank transfer. It then waits for the twice weekly investment cycle.

The main website is good, the app not as good, not very full featured and it's developed for phone not tablet. Fine for checking your gains/losses though. I also had different experience logging in on a tablet as opposed to desktop computer. On the mobile site I couldn't see the messages from the team, only on the desktop site.

airynothing - 20 Jun 2018 11:56:21 (#2 of 35)

Only just seen this, and it sounds interesting. What sort of return are you hoping for? And how's it going so far (if it's not too soon to tell)?

xDiggy - 20 Jun 2018 12:00:14 (#3 of 35)

I looked at Nutmeg but it seemed expensive for what it was. I put money in a Vanguard 'life strategy' fund - you can pick different equity/bond mixtures for your risk level and it does all the same rebalancing stuff. The website isn't quite so whizzy but it does the job.

TRaney - 20 Jun 2018 12:01:52 (#4 of 35)

yes, it was hard to see the niche for me. If you knew enough to be interested you could do it yourself

xDiggy - 20 Jun 2018 12:04:38 (#5 of 35)

These are the Vanguard funds:

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds

Only a 0.22% charge. IIRC Nutmeg is about three times that.

rearranged - 20 Jun 2018 12:07:07 (#6 of 35)

The advantage Nutmeg has over Vanguard is that the active management means they should be able to react to market movements. With passive Vanguard funds you just go with the market.

Of course the question is whether the performance of the Nutmeg managers is good enough to justify the extra costs. Most investment managers are not good enough.

helbel - 20 Jun 2018 12:38:03 (#7 of 35)

The Nutmeg fee was similar if not the same as the preferential fee that Hargreaves Lansdown were offering my BigCorp for a similar ISA but with more work on my part on choosing funds etc.

My return as of yesterday is at 2.28%, but it does of course go up and down and I've only got a couple of months payments in.

If you knew enough to be interested you could do it yourself

I'm interested, but I have neither the time nor inclination to do the research myself. I'm more interested in the results in 5-10 years time, so I'm happy to pay for someone to do the work for me but as I'm investing small regular amounts this seemed like the best route.

TRaney - 20 Jun 2018 12:39:41 (#8 of 35)

I have neither the time nor inclination to do the research myself.

I didn't mean the research, more the level of active management they are likely to apply. But I may be unnecessarily cynical.

helbel - 20 Jun 2018 12:44:52 (#9 of 35)

I'm using the fixed allocation portfolio rather than active management so they won't be rebalancing often.

What I did like is the simplicity of the fees. When trying to sort out pension stuff and other things trying to find out what the total charge is can be very tough, whereas this way all the fees are very upfront and obvious.

TRaney - 20 Jun 2018 12:48:34 (#10 of 35)

If you are anything like as procrastinaty as me the most important thing is that you've done something rather than nothing

helbel - 20 Jun 2018 12:50:27 (#11 of 35)

Well yes. My pension was down last year and so I'm thinking of changing the fund it's in as I'm not happy with the performance, but actually doing something about it...

xDiggy - 20 Jun 2018 13:02:30 (#12 of 35)

I'm using the fixed allocation portfolio rather than active management

This is what I had assumed. I've never seen any evidence that paying for active management is worth it.

helbel - 30 Jul 2018 22:18:12 (#13 of 35)

I see Wealthify are now advertising on the tube and have a swish new website and app.

SheikYerbouti - 30 Jul 2018 23:53:56 (#14 of 35)

My partner works in asset allocation for a fund manager and will bore your ears off with statistical, historical based evidence that active management is not worth the bother in respect of equity investment. That's if you have access to the right fee structures; in practice as a small investor you might find there are all sorts of additional fees your broker will charge that mean ETFs and the like are unexpectedly expensive.

helbel - 31 Jul 2018 08:09:26 (#15 of 35)

I would sadly be enthralled by that conversation.

In Nutmeg news I'm still currently in the black currently hovering around 4% which is probably the best return so far in the few short weeks I've been investing.

They've added a new feature to the app so you can see your projected balance over time (complete with good return, poor return and original investment bars).

helbel - 18 Oct 2018 10:33:19 (#16 of 35)

I'm now seeing adverts for Moneybox which offers rounding up of your daily transactions into your savings. They only offer three investment strategies. And I'd've preferred a lot more detail on the website but I guess it's aimed at millenials.

This was a feature I would have been interested in but I guess it relies on Open Banking and giving them access to my account.

My isa has obviously taken a hit with the recent downturn in global equities, and currently is worth less than I've put in, largest daily loss was -3% (largest high since investing was +5%).

The app has continued to make small improvements so overall still happy with my choice.

TRaney - 18 Oct 2018 17:53:15 (#17 of 35)

https://www.bloomberg.com/news/features/2018-10-11/betterment-s-low-fee-evangelist-has-a-retirement-algorithm-for-yo

helbel - 18 Oct 2018 18:14:04 (#18 of 35)

Interesting article, thanks!

helbel - 03 May 2019 16:20:28 (#19 of 35)

Well it's been a year since I invested and it's been up and down. Equity market plunge at the end of 2018 left me 10% down at worst. This year it has recovered to a high of +5.7. So currently up.

I've been asked by Nutmeg to log in to the desktop site to check my investment intentions as part of an annual review process.

The app is no longer compatible with older iOS versions.

That's about it, everything seems to be running quite smoothly and I'll continue investing this year.

InternationalVicar - 03 May 2019 16:31:25 (#20 of 35)

Fair enough.

One of the benefits of DIY is starting a learning curve.

One of the learnings is to cut costs to the bone.

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