How do you use savings supermarkets?

Prudent

I have been advised to use savings supermarkets like Fidelity Funds-Network or Cofunds to buy either corporate bonds or commercial property bonds. Please can someone tell me more about them and how they work?

dunstonh

They are not savings supermarkets. They cater for investments, not savings. They are generally referred to as fund supermarkets or platforms.

Instead of having to go direct to the fund houses to get the funds offered by them, you can go to the fund supermarket and mix and match your holdings from different fund houses all in one ISA, PEP, Pension, onshore/offshore bond or held unwrapped in unit trust/oeic/sicav form.

The fund supermarkets usually get a majority of the funds discounted as well making them cheaper than going direct.

Prudent

Thank you for a helpful reply.
Would you need a certain level of knowlegde before using them?

dunstonh

You would need knowledge of investing. i.e. what the different sectors are, what the different risks are and which funds to use and not to use. Tax wrappers may come into it as well.

However, if you are used to investing in unit trusts/oeics/sicavs (investment funds) then the fund supermarkets make the admin a whole lot easier and cheaper.

If you have an adviser, then it is their job to hold the knowledge. Providing you are satisfied they have enough knowledge to handle your portfolio.

EdInvestor

These fund supermarkets are the ones used when you have an advisor.

There are also alternative supermarkets for people who want to DIY and these are of course cheaper, as you don't pay advisors.

https://www.h-l.co.uk is a popular one

Prudent

Thank you both.

I am a completely inexperienced investor. I was given the advice here:

http://money.independent.co.uk/personal_finance/invest_save/article2664449.ece

I now need to know how to take it forward.