Is H-L really the best choice for fund investing?

juicyjude

I have 7 funds with cofunds through my IFA. They seem very efficient and have no problems with them, hope this helps

sabretoothtigger

Trading funds seems more feasible with HL, overall simpler. Watch the spread on the price though

Lansdowne

Is the Cavendish charge £25 per purchase? The web site isn't very clear which is why I decided not to use them a couple of years ago. I use Cofunds via Chartwell Direct which makes no charge to purchase and gives 0.15% AMC rebate. On occasion I also use Alliance Trust who charge £12.50 per transaction (buy or sell) and give annual rebate of "between 0.5% and 0.75%". With AT you can buy shares as well as funds for the same transaction fee.

atypical

Lansdowne wrote: »

Is the Cavendish charge £25 per purchase? The web site isn't very clear

Seems pretty clear to be honest. From the website:
"To process your investment application we charge a one-off fee of just £25 for ISAs and OEICs, and £35 for Bonds and VCTs."

koru

With ATS, Aberdeen Emerging Markets has a full refund of the initial charge and 0.75% AMC rebate. They do, however, charge £12.50 to buy or sell an investment, so if you are investing small amounts it might take a long time for the higher rebate to recoup this charge. If you are investing larger amounts, ATS is probably cheaper than both HL and Cavendish.

With Invesco Perpetual High Income, again full refund of initial charge and 0.5% AMC rebate, which matches the Cavendish rebate.

oldfella

Is the Cavendish charge £25 per purchase?

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its a one-off registration fee, once registered you just buy your funds from fidelity

Reaper

koru wrote: »

With ATS, Aberdeen Emerging Markets has a full refund of the initial charge and 0.75% AMC rebate.

That's interesting as Cavendish claim they rebate 100% of the trail commission so I wonder why there is a 0.25% difference in the figures. As you say though the transaction fees rather spoil it.

dunstonh

Is ATS explicitly charged (known as unbundled)?

If it is, then the 0.75% rebate could be the natural trail commission (0.5%) and the platform cut (typically around 0.25%). You tend to find the unbundled platforms would quote around 0.75%. However, they will have a platform charge (either an annual fee, transaction charge or add on an explicit annual percentage themselves).

Unbundled platforms also tend to offer the institutional version of the funds as well as the retail version. Institutional versions are usually cheaper.

Reaper

I just thought I would revive this to say I have now looked at a range of funds I was interested in comparing HL and Cavendish/CoFunds, and with the exception of the Emerging Market sector Cavendish usually refund the whole initial fee (as do HL) but offer much better refunds on the trail commission.

My wife is about to invest some money and I think we will be going with CoFunds via Cavendish this time.

turbobob

Worth noting if you buy shares in Alliance Trust (ATST) they discount the dealing charges (up to 50% if you buy 10,000 shares) and they take no initial or trail commission - http://www.alliancetrustsavings.co.uk/pdf/table-of-charges.pdf