switching investment

hebron

I have been reading up and asking question before opening a fund with Hargreaves landsdown.
I have a question about switching funds, if I'm not happy with the fund I have. It seems easy enough to change funds and the charges seem low, but have I got it right that you would only get the selling price of the fund your changing, to re-invest in your new fund?
If this is the case, I have noticed that on some funds the difference between the buy and the sell price is around 40p.
That would mean by switching funds you would have far less to put in your new fund.

Have I got this right or am I way off?

Thanks for your Patience.

gozomark

40p on what fund price ? If the fund price £1 that's a lot, if its £1000 its not

Ian_W

When you're researching funds - Unit Trusts (UTs) are dual priced but Open Ended Investment Co's (OEICS) are single priced - there's a very full explanation of the differences between them HERE.

I've just checked by ISA funds and only 2 out of 10 are UTs and I haven't deliberately tried to avoid them. The spread on both those two is around 2.5p per unit (+/-5%).

In practice though the buy/sell spread as I understand it (someone corect me if I'm wrong) usually only equates to the funds initial charge. As HL discount these, often to zero you'll find you actually buy a UT at or very near to the official sell price rather than the more expensive buy price. The initial fee pricing for OEICS is explicit but again is discounted.

When your account is open the HL valuation will be at the sell price for any UT's you hold, so when you sell you receive what the valuation says you will.