Nutmeg slashes minimum investment to £500

Nick HungerfordNutmeg has halved its minimum lump sum investment from £1,000 to £500.

Customers can now set up a portfolio with £500, provided they invest £100 per month for portfolios of less than £5,000, the online investment manager says.

The cost of this service is one single annual management fee of 0.3 per cent to 0.95 per cent of the invested assets, including VAT and depending on the size of their investment.

Nutmeg chief executive Nick Hungerford says: “For too long sophisticated investing has only been available to the super wealthy.

“There is no reason why somebody with £500 shouldn’t get the same quality of service – a professional investment team, a diversified, regularly rebalanced portfolio as a millionaire.”

Nutmeg has recently cut its management fees replacing the six fee bands with four as well as reducing the initial fee of 1 per cent to 0.95 per cent.