Nutmeg offers free management for Lisa

Nutmeg offers free management for Lisa

Nutmeg is offering free portfolio management to new customers investing in preparation for the Lifetime Isa.

The offer, dubbed ‘Lisa 333’, allows customers to make an initial deposit of £500 plus 11 deposits of £333 – totalling just over the maximum annual Lisa allowance of £4,000.

Enrolled customers will pay no portfolio management charges on any investments in their Lisa 333 funds, up to a maximum of £4,000.

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Martin Stead, chief executive of Nutmeg, said: “By beginning to build that £4,000 pot now, customers will benefit from compounding returns immediately, so they will be in the best possible position when the Lisa – and its 25 per cent government reward – launches in a year’s time.

“Because of the power of compounding, sooner is better than later,” he added.

Nutmeg has stated it will convert customer investments for the Lisa 333 offer into a Lifetime Isa as soon as the government makes the product available.

The offer closes on 30 June and only covers the charged portfolio management fee (between 0.3 per cent and 0.95 per cent), not any underlying fund costs.

The Lisa is expected to be launched in April 2017, with the offer based on this assumption, although Nutmeg has said that both the launch and the associated rules are under consultation and subject to change.

If things do change, the firm said it will contact customers using the promotion with the options available to them.

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Robert Forbes, a chartered financial planner with London-based Stadden Forbes Wealth Management, said ultimately this is a marketing ploy.

He said: “I don’t know what the take up is likely to be, but it does suggest Nutmeg is keen to move into that market.”