Fund Supermarket Help Please

andyjwill

Sorry this may seem like a question with an obvious answer but I just want clarification from anyone with experience...

I have OEICS recommended by an IFA with a variety of fund managers (I am happy with protfolio spread); some via Skandia and some via Fidelity.

Initial charges are 3.5%-5% and AMC of approc 1.5%. I understand I am paying for the IFA etc..

However I am realtively savvy and in reality I pick most of the funds..

Hargreaves lansdowne through a vantage fund seem to rebate initial charges and rebate some of the AMC..

Is this a no-brainer and am I just giving my hard earned away? or are there any catches to the HL.

I will be paying in about £1200 per month to a mixture of funds..

Thanks

mike88

Its a no brainer. Anybody who pays initial charges is not very astute but we all have to learn somewhere.

So, transfer to HL or some other discount broker asap. I use Cavendish and also get a full rebate of initial charges (unlike HL which is a partial rebate) but its a bit more complex to set the Cavendish arrangement up as the onsite instructions are difficult to comprehend. HL is easier.

DrSyn

1.If my memeory is correct HL repates half the trailing commision to you.

2. You might like to take a look at "Alliance Trust Savings" as an laternative/addition to HL. As they will rebate all of the trailing commission to you.

3. There is no catch with either. Both only will rebate the trailing commision to you if they get any from the fund you arr investing in.

4. There has been a debate on this site on the mertits of the Supermakets I believe. If you want to do some research in this area I suggest you take a look at the following site.

www.candidmoney.com

jem16

andyjwill wrote: »

Initial charges are 3.5%-5% and AMC of approc 1.5%. I understand I am paying for the IFA etc..

I think that's the whole point here - you are paying for the IFA.

If you need the IFA's advice on fund chossing, rebalancing etc then you pay. If you don't choose a DIY option that avoids the initial charge and rebates all or part of the amc.

Jake'sGran

DrSyn wrote: »

1.If my memeory is correct HL repates half the trailing commision to you.

2. You might like to take a look at "Alliance Trust Savings" as an laternative/addition to HL. As they will rebate all of the trailing commission to you.

3. There is no catch with either. Both only will rebate the trailing commision to you if they get any from the fund you arr investing in.

4. There has been a debate on this site on the mertits of the Supermakets I believe.
.....................................................

In most cases HL rebate all of the initial charge and give extra units. They rebate a small amount of the annual trail commision they receive. HL seem to be the most popular broker on this website and
their service is usually very good.

I believe Alliance Trust deal mostly in Investment Trusts but it may have changed since I last looked and the initial charge on ITs is low anyway. I would not buy an IT from Hargreaves Lansdown as there is not much to gain.

oldtoolie

Alliance Trust Savings is the fund supermarket operated by Alliance Trust which is an investment trust. It offers most funds, shares and investment trusts you might want. It offers the Vanguard funds which many fund supermarkets don't.

Charges are comparable to H-L and others although tends to take fees rather than commissions which is advantageous to larger accounts.

Totton

Add one vote for the fund supermarket if you are making your own investment decisions, otherwise stay with the IFA if they are doing a good job.

I use Hargreaves Lansdown and have been very happy with their performance, customer service has been the best of any services I have received for a long time, speed of fund transactions is excellent with some taking place the same day and most within 2-3 days.

HTH,
Mickey

Marco12452

Many others on internet basis ...
Share Centre
Interactive Investor
BestInvest and so on.
They have discount, if not nil initial charges, and do not charge an admin fee like many others do. The fund supermarkets tend to give you a good online management tool as well allowing you to access the details, or deal from anywhere you have internet access.

esslemont

I have been looking at using a discount broker as well and have visited a few sites. One of them is commfreefunds.com. Would appreciate feedback from anyone who is using this broker or knows anything about them. Cheers.

talexuser

I don't know but it sounds like they are CoFunds since they only deal in CoFunds wrapper?

If that is the case the Fidelity Fundsnetwork is better because they offer much the same at only £45 a year?

esslemont

Thanks for your post. I've just had a look at the Fundsnetwork website and copied the following;

What is the Account Fee?

For £45 per annum, you can submit ISA and collective investment business online for your clients without them incurring any initial or fund switching charges (other than any commission payment that is agreed between you).
Here are the key points you need to know about the Account Fee:

• Annual fee of £45 per annum (£22.50 collected half yearly)
• No initial charges on lump sum and Monthly Savings Plan investments submitted online
• No switching fees on all transactions submitted online
• Qualifying assets include ISAs (including paper transfer applications) and collective investments
• Available to all UK advised (non-corporate) clients
• Only advisers can opt in their clients
• Opt in can be done on an individual or bulk basis
• Only one fee is collected per client but all their accounts linked to an adviser will benefit
• Clients will be given a 30-day cooling-off period once opted in
• Once the cooling-off period has ended, the client cannot change their mind and switch to our alternative Initial and Switch charging option
• No impact to your commission arrangements

Point six seems to imply this is only available to IFAs, is that correct or can anyone join?

D