Fund investment - avoiding initial charges

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Legacy_user
Legacy_user Posts: 0 Newbie
in Savings & investments
Hi,

I wam plannning to invest in funds for example fidelity special situations fund etc. however these funds have initial charges like 5 % or so.
As i understand that if i buy these funds through some site like http://www.directinvest.co.uk/ or others i will save on the initial charges. Is it safe to invest through these?

What will be the difference buying it dircetly from fidelity or buying it directly from them ? Also these discount brokers also do not list the buying unit price at which i will get the fund.

Even after buying the fund through the discount broker will i be able to see the my fund performance online ?

Thanks
«1

Comments

  • BULLNOTBEAR
    BULLNOTBEAR Posts: 101 Forumite
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    It looks as if the direct link gets you through to Fidelity website anyway so you should be able to view investments through fidelity.

    The disclaimer when you link to fidelity says that the intermediary site (i.e directinvest) will appear on your application as your intermediary.

    The Fid Special Situations carries a 0.25% initial charge through direct invest.

    Martyn
    Val :)
  • dunstonh
    dunstonh Posts: 116,387 Forumite
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    Find an IFA that will do it with no initial charge.

    Many will still be happy to do that as they will get paid upto 0.5% per annum of the fund value.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • mutley74
    mutley74 Posts: 4,022 Forumite
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    try https://www.hargreaveslansdown.com

    i use them and they offer good discounts plus a share of the renewal commision they receive.
  • System
    System Posts: 178,094 Community Admin
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    Hi,

    I am really sorry for not able to understand.

    But i still do not understand that what is the difference in buying a fund directly from the company say from fidelity website or buying it through for example http://www.hargreaveslansdown.co.uk.

    If i want to sell the fund off after some time do i have to go through the discount broker again ?

    Will Fidelity have any records that the fund is held in my name ?

    Will i get my quarterly fund statements directly from fidelity ?

    Thanks
  • brodev
    brodev Posts: 1,018 Forumite
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    Hi, I think there is a board here that goes into the details of all this. But ,as I understand it, Fidelity (for example) sells a fund at a price that includes the IFA´s commission.Fidelity will only sell at that price. An IFA, on the other hand, can decide to refund you some or all of his commision. I , personally, use https://www.bestinvest.co.uk because they give limited advice as well as refunding all the initial comission. I still get all the relevent info from Fidelity and others and Ialso get info from bestinvest. I hope this helps
    Something Really Interesting
  • BULLNOTBEAR
    BULLNOTBEAR Posts: 101 Forumite
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    I don't think that DIRECTINVEST is part of FIDELITY - just another discount broker!

    Most of these discount brokers use account nominees so you would have no direct holding with FIDELITY. So I guess it depends on whether DIRECTINVEST provides on-site of viewing of investments.
    !

    Hi Paul

    You have misunderstood my posting. I mentioned nothing about Fidelity owning Direct Invest.

    There is a web link from the Direct Invest website to Fidelity Funds Network. You apply on the Fidelity application with Direct Invest being your Intermediary and providing the relevant discount. You can then access your holdings through Fidelity.

    Martyn
    Val :)
  • System
    System Posts: 178,094 Community Admin
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    Hello

    For the experts on this board. Does anyone know of an investment trust with the same sort of performance...

    Thanks

    Smokeyone
  • System
    System Posts: 178,094 Community Admin
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    Hi Martyn,

    I could not see the weblink on direct invest website which directs back to Fidelity at least for fidelity special situations fund.

    As far as i understood what needs to be done is that a form needs to be filled where you specify your adress etc after which Dirct invest will post the forms to the specified address. These forms need to be filled and posted to direct invest.

    Or am i a bit confused on this ?

    Cheers
    Negs
  • System
    System Posts: 178,094 Community Admin
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    Hello Paul

    Thanks for the advice

    Smokeyone
  • System
    System Posts: 178,094 Community Admin
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    Thanks Paul and Martyn for this discussion. Learned quite a lot of things from this post. Not many posts on this board discuss regarding investments. Most of them are related to savings.

    Cheers
    Negs
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