Switching funds from H-L to Cavendish (Cofunds)

talexuser

I had a quick look through the website and could not find the T&C where it costs you to sell an existing fund into the cash reserve . I've just put new money into cash for short periods while deciding which fund to invest in and never seen a loss.

Then it's back to whether you churn funds often to gain from the climbers, or stick with more stable long term bets as to whether the full 0.5% compounding is worth it compared to the higher switching charge.

Take as an example if you switch every fund once a year that still gains you 0.25% on each fund for that year from the trail? How does that compare to HL assuming the initial discounts are the same?

soulsaver

Reaper wrote: »

I may be a bit dim here but do you ned to pay the switching fee? Assuming you have gone via Cavendish to access CoFunds all commission is rebated. That means many funds have no initial charge. Therefore surely the way to avoid paying the 0.25% switching fee is not to switch directly, but instead sell to cash and repurchase whatever fund you want.

Of course that only works for funds which rebate the entire initial commission.

Also remember that unless you have funds in cash you'll be out of the market for the settlement period which is 3 min, prob 4 and upto 5 days depending on timing, rather than 1 for a switch. If you miss a good day or 2 saving 0.25% will not be much compensation....