You are here: Home - Investing - Experienced Investor - News -

Robo firm Nutmeg to offer over-the-phone financial advice

Written by:
Nutmeg, the robo-adviser, is piloting a new financial advice service offering people personalised investment recommendations from a qualified adviser over the phone.

This is a move away from the traditional robo-advice service Nutmeg currently offers, which relies on a series of algorithms to determine the most suitable portfolio for customers based on a risk profiling questionnaire.

Lisa Caplan, the firm’s head of financial advice, told the service was launched after customers often said they wanted a human to check they were making the right investment decisions.

The pilot, which launches today, is open to anyone, not just Nutmeg customers.

An initial consultation is free and tailored advice costs £350 plus fund fees.

While the advice comes from a qualified adviser, it is restricted to the products available on the Nutmeg platform.

Nutmeg offers 10 fully managed and five fixed allocation portfolios across different risk levels. All portfolios invest in exchange traded funds (ETFs), which help keep costs down.

Caplan said: “As a former traditional wealth adviser, I know the value of one-to-one advice. But it can be a long process and expensive. We want to bring the Nutmeg approach and make it elegant, faster, more tech-led and easier for customers to engage with.

“This service isn’t going backwards [to traditional advice] but is complementary to our robo-advice service.”

How the service works

You can register your interest in the advice service on the Nutmeg website. The firm will then send you a questionnaire about your finances to complete.

If they think you could benefit from financial advice, they will set up an initial phone consultation, which is free.

If you decide to go ahead, they’ll produce a report with their advice and set up a second phone call where they’ll help you implement their recommendations.

Is it good value?

It’s difficult to judge cost of advice as it often depends on the complexity of your finances and the type of advice you require.

Some advisers charge an hourly fee, while others charge a set price for a piece of work, or an ongoing fee.

Generally, a financial adviser’s fee can vary from £75 an hour to £350, although the UK average rate is about £150 an hour, according to the Money Advice Service., an adviser search site, says the typical cost of investment advice is around £450.

Bella Caridade-Ferreira, CEO of Fundscape, a platform research firm, said: “At £350, Nutmeg’s new service is competitively priced, but it also needs to deliver and provide good quality advice to retail customers.

“If Nutmeg gets this right, it’s likely to drive growth in its robo business so it’s a win-win combination.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week