Buying into a fund on Halifax Share Dealing

glider3560

I've just placed an order to invest in a fund on Halifax Share Dealing.

The fund has a minimum investment of £100,000 however I've placed an order considerably lower than this.

The iii website states that the minimum for this fund is £20. The Halifax site has no mention of a minimum.

Is it the case that Halifax (who also run the iii service) will combine many people's orders to collectively invest more than £100,000 in one go?

opinions4u

I doubt it!

Post the outcome when it happens though .

glider3560

I was thinking along the lines of their ShareBuilder service, as the iii website gives considerably lower minimum investments than the details provided by the fund manager.

Will have to wait and see what happens, although I think it would be strange for HSDL to accept an order for less than the minimum?

glider3560

With a bit of digging, I found that Halifax use Cofunds to settle funds trades.

From the brochure on Cofunds website, it says

All trades are aggregated by Cofunds and placed electronically with the fund managers.

I'm assuming that as both Cofunds and HSDL operate as nominees, the units will be registered in Cofunds name, with HSDL/myself as the beneficiary.

jimjames

There is a fund on HL where the minimum for investment is £500,000 if you read the managers info. However on HL you can invest from £50 monthly so what the platform tells you should be the correct info.

glider3560

My order is showing as "Active", so all good so far. I understand it should be executed during the day then updated online overnight.

glider3560

And the order executed!

This is well worth remembering as the Fund Manager offered two varieties. The 'A' version had £500 minimum, 0.5% AMC and produced a slightly lower return. The 'C' version was £100,000 min, 0.3% AMC and had a better return. I chose the 'C' version but invested less than £500.

I'm currently experimenting with small amounts to get used to the interface and terminology before I start with larger amounts!