Robo-Advisor Comparison and Review

Robo-Advisor Comparison

Use the interactive Investment Superstore Robo-Advisor comparison tool to compare annual charges and cost-effective providers of Robo-Advice 

We have also compiled a breakdown of key features to help you discover the platform that offers the functionality and charges you need. 

Robo-Advice has grown over the past five years as innovation in wealth management has allowed investors to benefit from low cost wealth services. The low minimum investments set by Robo-Advisors means those individuals shut out of traditional financial advice by high costs can now enjoy professionally managed investments.  

Robo-Advisor Annual Management Charge Comparison:

BrokerMinimumMaximum
Moneyfarm0.40.7
Nutmeg0.250.75

 

Robo-Advisors:

Moneyfarm

  • Annual Fund Cost:
  • up to 0.25%
  • Annual Management Charge:
  • Up to £20,000 is 0.7%, £20,001-£100,000 is 0.6%, £100,001 - £500k is 0.5%, £500k + is 0.4%
  • Special Features:
  • Fully-managed portfolio constructed of ETFs, Scalable management fee, Around the clock investment committee
  • Capital at risk. Please seek independent financial advice before undertaking any investments. Investment Superstore will accept no liability for action taken by any user of this website.

Nutmeg

nutmeg-logo-investment-superstore
  • Dealing Commission:
  • NA
  • Annual Management Charge:
  • 0.45%-0.75% up to £100k. 0.25%-0.35% beyond £100k. There are also underlying investment charges, see Nutmeg's fees page.
  • Special Features:
  • Fully-managed or fixed allocation portfolios, low fees, professional management
  • Capital at risk. Please seek independent financial advice before undertaking any investments. Investment Superstore will accept no liability for action taken by any user of this website.

 

How do Robo-Advisors work?

Robo-Advisors typically create portfolios for clients based on their indicated risk tolerance using passive investment models. Most Robo wealth managers will use funds that passively track broad indices of underlying assets such as Exchange Traded Funds (ETFs) or Tracker Funds.

What do Robo-Advisors invest in?

Portfolios built by Robo-Advisors usually comprise of a mix of underlying assets such as equities, bonds, commodities and cash. The risk profile of the client will dedicate the allocation of each asset class with lower risk portfolios having a higher weighting of cash and bonds and higher risk portfolios having a higher proportion of equities and possibly commodities.

What level of returns can you expect from Robo-Advisors?

At the time of writing, Nutmeg say on their website that a medium risk portfolio has returned 26.1% since inception in 2012 and 6.0% annualised. Over three years total return was 14.3%.

As with all investing, investments made with Robo-Advisors can fluctuate and you may get back less than your original investment.

How much do Robo-Advisors charge?

Robo-Advisors charge an annual management fee ranging from 0.75% in the case of Nutmeg’s most expensive charging tier down to completely free if you invest less than £10,000 with Moneyfarm

Investment Superstore Risk Warning & Disclaimer: All Investment involves risk. Please ensure you understand these risks before you undertake any investments. Investments that use leverage and margin such as CFDs, Options and Futures carry a considerably higher risk than traditional shares and are not suitable for all investors. Any information on the Investment Superstore website is general in nature and not a recommendation to act. Investment Superstore does not itself provide any investment advice nor is any of the content on this site an inducement or invitation to enter into any financial activity. Investment Superstore will not accept any liability for action taken after using this website. If you continue to use this website you agree to this statement and to our terms and conditions.