Investment Strategy in 2014

At Nutmeg we are a team of investment experts and analysts who offer an investment management service to individuals who want to utilise the £15,000 limit on their Stocks and Shares NISA but do not have the expertise or confidence to make their own investment decisions.

Investing with Nutmeg is a quick and easy process, as you can set up a portfolio in just 10 minutes with a minimum deposit of only £1,000. Your funds will then be in the safe hands of our team of investors, including British economist John Kay and led by Chief Investment Officer Shaun Port – who has over 20 years’ experience developing strategies for banks, pension schemes and high-net-worth individuals.

Long-term, intelligent asset allocation

It is generally accepted that the optimum investment approach is through long-term, intelligent asset allocation – as opposed to focusing on a single company or commodity and hoping that it outperforms the competition. Investing with Nutmeg means spreading your funds across a number of assets, giving you a diversified portfolio that reduces risk while increasing the chance of a returned profit.

If you’re considering investing with Nutmeg, you may want to know exactly which types of asset we will be watching closely in 2014. Our investment strategy covers four different areas, each of which offers a varying level of risk and return.

Bonds, Equities and Cash investments

Bonds are one of the least risky assets that we look to invest in here at Nutmeg. Government bonds within the United Kingdom and the global market offer relatively low levels of risk, and Index-Linked bonds in the UK and US offer a similar low risk by protecting investors against inflation.

A second low-risk area to our investment strategy is cash. Any diversified portfolio requires cash to make new investments, although naturally this provides return only in the form of interest payments. Money markets generally offer a higher level of return than simple cash deposits, although there is an added risk of the buyer failing to repay.

Equities form a higher-risk asset when investing with Nutmeg, whereby we invest in shares of large companies found on stock markets like the FTSE 100, New York Stock Exchange and Tokyo Stock Exchange Index. The global reach of the markets and the expertise of our analysts mean that we can pick investments that are more likely to return a profit in a timely fashion and with less risk.

The fourth area of our strategy constitutes the other types of investments that generally pose a higher risk with the possibility of a greater profit. For example, property and infrastructure offers investors a good hedge against inflation, as well as the potential for capital appreciation. Commodities like gold and oil can also offer attractive returns, but with a higher risk than the likes of Bonds.

Remember that by investing with Nutmeg your funds will be spread across several of these areas to minimise risk and increase the chance of profit. We will split your investment between at least 10 different types of assets, spread across equities and bonds from a number of different countries and industries.

For more information on our investment strategy, or to start investing with Nutmeg today, why not get in touch with our team of experts?

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