Nutmeg, an online wealth management company, has trimmed the charges its applies to investors' portfolios. It comes as a handful of similar "roboadviser" rivals prepare for launch in the UK However Nutmeg said it was merely passing on its own reduced costs after improvements were made to its investing systems last year - rather than reacting to fresh competition. Nick Hungerford, founder and chief executive, said: "We don't know what all these rivals will offer or even if they will get the approvals they need to operate. "What we do know is that we remain cheaper than 99pc of our rivals, the old world wealth management companies." Nutmeg has been feted as a darling of UK fintech and has attracted the attention of traditional fund managers. Schroders took a share, investing $32m in the company in 2014. The service allows customers to invest online, including through Isas and Sipps. They are asked questions about their goals and attitude to risk and the money is allocated, via low-cost tracking funds, to reflect this. The management charges have been trimmed for most investors, the company said, with those of less than £25,000 invested paying 0.95pc instead of 1pc. The company said that due to the power of compounding, the savings could be £5,582* on a £175,000 portfolio over 20 years, based on 5.5pc annual investment growth.
UK robo-advisory pioneer, Nutmeg, has cut its charges, as a wave of rival platforms prepare to launch. The company said it would charge £2.99 for the first year and £1.49 thereafter.