I like money.
I like talking about money, spending money, thinking about money. I can never get enough money ;)
But as I’ve grown older I’ve had a most surprising revelation. I also like SAVING money. I’ve literally never really saved money in my whole life – it used to be that as soon as it was in my pocket it went – so saving has been a total revelation. A wonderful one. Working out my budget so that I’m able to save has left me feeling empowered, excited, responsible. I wish I’d discovered this feeling ten years ago!
I’ve come to the point where I want to do more interesting things with my savings, though. I’d always thought of investments as a good way to make my money work harder but as a person with no other investments than a £75 Premium Bond and an ISA I wasn’t quite sure how to go about investing (investing! It sounds so official). It’s not like I have loads of dollar to employ a financial advisor or anything.
Which is where Nutmeg comes in. They do indeed make your money work harder by creating and managing an investment portfolio for you, diversifying your investments to avoid putting all your eggs (money) in one basket. Their experienced investment team monitors your portfolio, adjusting your asset allocation appropriately and rebalancing every month. No expensive advisors – no stressful time-sucking management needed.
Now, I’m no financial expert but I found the sign-up process at Nutmeg really easy to understand.
The funds are compromised of a variety of shares, bonds and other financial instruments and you’re able to choose your level of risk. For example, if you are risk averse you are able to choose a low risk level and your fund will be mainly compromised of UK equities, government and corporate bonds, and money market funds. If you don’t mind a moderate amount of risk, you can join a higher risk group which is made up of both UK and foreign government bonds, UK and overseas equities and a mix of commodities. The highest risk group is for those who have a long time frame of investment and don’t mind a bit of risk. This fund includes equites from UK and abroad as well as a mix of commodities and property. This fund has produced the highest return of the lot averaging 10.6% over the last year but it is also the most volatile.
Ok, now I kind of feel like a bit of a financial expert.
At Nutmeg you can start with as little as £1,000 per fund (plus minimum monthly contributions of £50 for portfolios below £5,000) and set up as many funds as you like, each with their own timeframes and risks. You can see an online overview of your investments whenever you like, so you’ll always know how they’re performing and how much you’re paying.
It’s basically a great way of investing for those of us who want to see our pots grow but have neither the knowledge nor time to spend hours watching over various funds.
I’m convinced, but would love to know how you like to invest your money. Are you an investment person?
Thank-you Nutmeg for supporting MTT!