buying ISA funds direct or via Cavendish?

fatbob10

Would appreciate a bit of help. Have just cashed in my Virgin ftse all share ISA (only worth around £5000) which I have had for some years. Was intending to place these funds into a new ISA fund using up this years ISA allowance that i have. Was looking at the Fidelity Moneybuilder UK Index and was going to purchase it online at Fidelity online. Having read some stuff on Cavendish online would it be a better option to purchase this ISA fund via cavendish?

Sorry if there are some obvious errors on my part in the above - not very literate when it comes to fund purchasing. Any help from someone more knowledgeable would be much appreciated.

talexuser

don't buy direct from the company, you pay more up front, thus having less in your investment pot, and lose a fee every year.

Buy from a discount broker such as Cavendish, they discount the initial fee for a one off cheque for £25 last time I looked, and pay back the yearly fee for investment in your funds, thus this compounding is better over the years.

If your choice underperforms and you wish to swap to another fund choice, do it through the broker keeping it all in the ISA.

Soliton

Agreed, don't go direct.

Use the lower costs and flexibility of a fund supermarket. Cavendish is one, Hargreaves & Lansdown is another worth looking at.

mike88

All Fidelity Moneybuilder funds are free of initial charge. I don't think there is trail commission either so as long as you stick to the Moneybuilder range there is no advantage in using Cavendish.

If you want to diversify away from the Moneybuilder range you can always switch your investments in then for a fee of £25 and benefit from trail commission rebate.

Normally it is better to use a discount broker but there is no advantage if you invest in Moneybuilder funds.

fatbob10

thanks for all this really useful info

psychic_teabag

Soliton wrote: »

Agreed, don't go direct.

Use the lower costs and flexibility of a fund supermarket. Cavendish is one, Hargreaves & Lansdown is another worth looking at.

I think H-L might charge extra to hold the moneybuilder funds, since they don't make any commission out of them otherwise. But you'd have to check.