Competitive Landscape - Wealthsimple and Nutmeg
Wealthsimple wants to help people start investing by removing the regular high fees and account minimums that comes with traditional investment management. Similarly, Nutmeg is marketing their service as democratizing wealth management by minimizing costs and charges and boosting customers' returns. The end-goal of these companies may be very similar, but they have very different target markets. Below is more information about each of the company's background, product offerings, and target audience.
- Wealthsimple provides smart, simple investing without the regular high fees and account minimums that comes with traditional investment management.
- According to the company CEO, Michael Katchen, Wealthsimple is "building the world's most human financial company."
- The company invests customers' money in a "globally diversified portfolio of low-cost index funds."
- Using Wealthsimple's cutting-edge technology, customers can earn the best possible return on investment while optimizing their tax bill at the same time.
- Wealthsimple's mission is to provide smarter financial services to everyone, regardless of age or net worth.
- Some of their offerings to customers include automatic rebalancing, tax-loss harvesting, and dividend reinvesting.
- Wealthsimple Invest is an intelligent portfolio of low-fee funds designed to meet individual financial goals.
- This method offers different kinds of investments, which include auto-deposits, dividend reinvesting, and automatic rebalancing.
- Wealthsimple Invest provides five types of accounts: personal, traditional IRA, Roth IRA, SEP IRA, joint, and trust.
- Wealthsimple currently manages funds from 175,000 people.
- Wealthsimple Save offers a low-risk investment account, another way of saving extra cash with 18x higher returns than the national savings account average.
- It automatically saves the change leftover from purchases when the figure is rounded up to an integer.
- Wealthsimple Save comes with unlimited free transactions, no account minimum, and no low balance fees.
- Wealthsimple is targeting millennials who want to start saving very early in life.
- The company is also targeting young people who do not trust big banks and dislike paperwork.
- Nutmeg claims to be "the UK's first online discretionary investment management company."
- Using technology, the company is on a mission towards democratizing wealth management by minimizing costs and charges and boosting the customers' returns.
- They claim to be the fastest uprising digital wealth management service in the UK. [s6]
- The company wants to change the method people manage their funds by combining an investment team with more than 100 years' experience in intuitive technology, offering the whole of UK high-quality wealth management and personalized financial advisory services with a totally transparent charging.
- Nutmeg claims to have gotten rid of all hidden ways customers lose money, such as premium charges, confusing benchmarks, use of technical jargon, lump sum, high fees charged, and sneaky charges.
- Nutmeg ISA offers transparent and flexible expertly built stocks and shares that customers can invest all at once, starting with 100% cash or drip-feeding money into the market.
- ISA is an individual savings account and a great module to protect one's money from tax.
- There are various types of ISAs available, including cash ISA, stocks and shares ISA, innovative finance ISA, and Lifetime ISA.
- With ISA, customers get value for their money as there are no hidden fees, and it is easy to set up.
- With Lifetime ISA, customers get a 25% government bonus. For every £4 invested, the customer receives a £1 bonus, with a maximum of £1,000 per year, which can be put towards an individual's first home or retirement.
- Lifetime ISA can be invested in these three portfolio categories: fixed allocation portfolios, fully managed portfolios, and socially responsible portfolios.
- Nutmeg Pension provides an "easy to use and intelligent personal plan."
- This plan allows the transfer of pension and can also be accessed from anywhere at any time.
- Nutmeg Lifetime ISA is targeting UK residents aged 18-39, citizens looking to acquire a property, and people interested in saving for their children and grandchildren.
- The company is also targeting customers who are not in dire need to reduce their debt, have appropriate insurance, have spare capital or income to invest, and customers who have enough money for emergencies.