Which Fund

djblamire

dunstonh wrote: »

Jupiter funds are available to IFAs with no initial charge so I would expect a site marketing itself as a discount site to not be charging more than what a local IFA can offer.

I'm very confused with it all now

Say I wanted to go for one of the Jupiter funds, who would I be best going through ?? - If I didn't want advice, just wanted to go ahead ?- with the lowest charges possible (both initial and annual), and any cashback that is on offer.

Thanks
Daniel

LittleJo

Hi,
Personally I follow fund managers, good ones seem to always turn in good results. I have put this years ISA into Bill Motts Psigma fund.
Citywire is a good site for fund mangers watching.
Jo

oldfella

Cavendish appear to charge a £20.00 fee for 'opening' an ISA with them.

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its a one-off to establish the account

not a bad investment to get several hundred pounds a year back for many years worth of maxi ISAs

djblamire

oldfella wrote: »

Cavendish appear to charge a £20.00 fee for 'opening' an ISA with them.

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its a one-off to establish the account

not a bad investment to get several hundred pounds a year back for many years worth of maxi ISAs

So with Cavendish there is no initial charge, and no annual management charge, just the £20.00 fee for 'opening' the ISA.

Do you just receive a cheque back each year, or do you have to re-invest in other plans ??

Out of interest, do you use Cavendish yourself ?

Thanks
Daniel

oldfella

So with Cavendish there is no initial charge, and no annual management charge, just the £20.00 fee for 'opening' the ISA.

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for most funds there is no initial charge
they rebate 0.5% of the annual charge - this is the part of the charge that goes to the broker
its not actually an ISA charge - its a fee for each account you have with fundsnetwork. I have 2, one is for ISAs one for non-ISA funds

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Do you just receive a cheque back each year, or do you have to re-invest in other plans ??

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cheque

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Out of interest, do you use Cavendish yourself ?

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yes

carnet

Is there not some confusion here between Initial Charge and Initial Commission (see post #21) ?

The way it reads to me is that Cavendish rebate their entire Initial Commission which, presumably, is the normal 3%. However, with many funds having an Initial Charge of anything up to 5.25% are you not still having to pay an IC of up to 2.25% (HL's IC discounts are typically better) ;

"There are two charges when you set up your plan.
The initial fund charge.
Usually between 3 and 5%, of which 3% is often commission. We reinvest all initial commission. This means that you will receive the usual reduced initial charges that Cavendish Online offer through reinvesting the commission and some funds will have no initial charge at all."

Also, as well as the £20 up-front charge they also charge an annual fee of £10 ;

"In summary we will keep the first £10.00 of any renewal commission each year"

Which could increase to £20 per annum if you have more than 10 funds (which many investors, including myself, have) ;

"We therefore reserve the right to charge an additional £10.00 annual administration fee if you hold more than 10 funds in each ISA, Pep or OEIC account."

As has been commented upon elsewhere recently, Cavendish only work out cheaper than HL on a buy and hold strategy and, on a portfolio of £10 K, even then only after about 4 years (of course, on a larger portfolio, this will be sooner). If I'm right about the IC (difficult to say as I can't seem to find any actual funds showing any actual IC discounts on their website !) this will take even longer.

An active investor is almost certainly better off with HL.

oldfella

The way it reads to me is that Cavendish rebate their entire Initial Commission which, presumably, is the normal 3%. However, with many funds having an Initial Charge of anything up to 5.25% are you not still having to pay an IC of up to 2.25% (HL's IC discounts are typically better) ;

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fundnetwork discount most funds anyway, with Cavendish discount on top - most funds end up at 0% initial charge - you get all the details on charges and annual rebate by asking them for their charges spreadsheet

oldfella

just checked the HL site - it uses the weasel words "up to 0.5% rebate"

on most of my funds such as Invesco Perpetual they actually give 0.25%

dunstonh

You didnt think they would discount it all away did you?

There are a very small number of funds that pay 0.75%. (and I mean very small number). However, that would allow you to say upto 0.5% if you discount that amount on just one fund.

carnet

oldfella wrote: »

you get all the details on charges and annual rebate by asking them for their charges spreadsheet

Does make one question why they don't have all the individual fund info detailed on their website like other web based discount IFA's such as HL, Bestinvest etc. etc.

Anyway, some time ago I asked them to comment on the conclusions contained in the first sentence of the penultimate para of post #27 and they replied that they would not argue against them.