The new service is called Nutmeg and is backed by venture capitalist Tim Draper and Klaus Hommels – a current board member of online music service, Spotify. Nutmeg’s goal is to provide investment solutions for retail investors at affordable rates and with minimum investment levels which are not prohibitive.
Using Nutmeg, investors are able to set their own level of risk and can watch, through various “online visualisation tools”, how their investment is developing. Nutmeg adds that, according to their experience and preferences, investors will have varying degrees of direct control over their investments.
The company claims to be the first online discretionary wealth manager capable of offering diversified portfolios to individuals of almost any level of wealth – the minimum investment level with Nutmeg is £1,000.
Clients are able to transfer existing ISAs to Nutmeg, can have as many new funds as they wish and are able to transfer, top up or withdraw cash at any time.
According to Draper, who was also an early investor in Skype and Hotmail, Nutmeg is “the right company to bring democracy and transparency to a sector which is ripe for reform”.
