Fund supermarkets.

hebron

Which is the cheepest or best value fund supermarket. This is just for buying funds in a ISA.

Thanks you.

Lokolo

Hargreaves Lansdowne usually.

Linton

hebron wrote: »

Which is the cheepest or best value fund supermarket. This is just for buying funds in a ISA.

Thanks you.

Fidelity seem OK - especially for their own funds

Rollinghome

hebron wrote: »

Which is the cheepest or best value fund supermarket. This is just for buying funds in a ISA.

Thanks you.

Cavendish Online, Alliance Trust , Clubfinance, or Hargreaves Lansdown , depending on what you need.

Details http://www.candidmoney.com/actionplans/actionplan3.aspx

hebron

Thanks, I'll check them out.

calebdylan

The first rule when it comes to buying funds is never go directly to the provider – the best deals lie with the middlemen.
Fund providers will typically slap you with an upfront fee, which you pay every time you invest in the fund and which can be as high as 5%. With a £1,000 investment you would therefore automatically lose £50.

martinfollower_2

Hargreaves Lansdowne are good if you can filter out all the heavy promotion they do for their favourite funds....

Although being naive and using some of their advice hasn't let me down yet! The funds have all done ok....

PS and you get a (tiny but better than nowt) loyalty bonus... commision refunded to you, not to them...

dunstonh

PS and you get a (tiny but better than nowt) loyalty bonus... commision refunded to you, not to them...

Not for much longer though. Soon they will have to start charging you as well.

martinfollower_2

dunstonh wrote: »

Not for much longer though. Soon they will have to start charging you as well.

How do you see the FSA ruling affecting companies like H&L? Have just read the article, seems that the business model will have to change, with increase in fees for us customers...

Defeats the point of me gambling blindly with my pension to avoid bad IFA advice!

Reaper

That is an alarming thought. Does that mean the end of execution only discount brokers? Surely not. I'd better go and read up on what these new rules are.

dunstonh

At the moment fund supermarket/platforms get what the FSA general consider to be backhanders. They want the whole lot to be explicit with you knowing what the platform gets, what he fund house gets and what the intermediary gets. There wont be backhanders, marketing payments or anything like that. So charges will have to be explicit and across the board.

Trail commission wont exist on new purchases after 2012. So, HL wont be able to rebate half of it. However, they are going to have to charge something as they cannot run their platform for free. It is possible that they are going to run it on that platform charge only but that's typically only around 0.2 to 0.3% of the AMC. Most likely they will add on 0.x% or something of that sort to the fund charge. Managed funds will likely then see little or no difference. However, tracker funds could well increase in price. Although some of the funds on HL already do this.

HL are very forward thinking and are no doubt already have plans to move to an explicit charge model before 2012. However, whether its is as cheap for the consumer as it is now is something only time will tell. I suspect their SIPPs will come down in price as they are expensive at the moment. So, there will be gains there. I suspect the net result on ISAs and unwrapped will be much the same but taken in a different way (instead of 1.50% minus 0.25% it will be 0.7% plus 0.3% plus 0.25%)

Does that mean the end of execution only discount brokers?

No. However, it will allow smaller firms to operate execution only models much easier. Most IFAs can already undercut HL if they want to. Problem is the processes and systems dont generally make it cost efficient for small amounts. If everyeone is working on the same basis (and not having to compete with marketing payments to certain companies for example) then it should be easier.