ISA Funds Networks

johnrammy

Hi

Can anyone help ? I currently invest £150 a month to a mini ISA' direct to Fidelity and Invesco, this was originally set up through an "independant financial adviser" ! I pay an immediate 3.5% charge and a 1.5% annual maintenance charge + I expect the adviser gets a commission.
I have paid in lump sums on occasion which the adviser always gets to know about.
Should I consider dropping the adviser and dealing with a fund network, I am unsure if they charge less.
I think the adviser has probably done OK out of me by know and as such have no qualms in saying bye bye.
Any help would be gratefully received.

Thanks :money:

paul666

Martin's "Cheapest way to buy funds" article:

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1080463348,20132,

dunstonh

You can try the different funds supermarkets. Each one has its pros and cons.

The IFA has made £4.50 gross per month out of you. Cost of advice would be around £500-800. So it would depend on how long you have been paying.

The IFA is the servicing agent of the policy and in that respect gets to know about the policy. He probably got paid 3% comm on each contribution you made to, even though you did it direct.

david78

johnrhammy,

If you go go to www.hargreaveslansdown.co.uk and do a search, you should be able to find a "portfolio healthcheck" form to download. Fill this in and send it to them and they will become your authorised IFA and they will rebate a proportion of the annual charge back to you. (Your old IFA will get a letter saying they don't deserve the comission anymore.) The other discount brokers (aka discount IFAs) will do this too.

Alternatively, look at their Vantage PEP/ISA account and consider transfering your ISAs to them. They should be able to transfer the funds by "number of units", i.e. without selling and buying back. Again they will rebate some of the annual management charge back to you. The main reason you might want to do this though is to get online access to your funds and discounts on switches and purchases.

If you transfer to a funds supermarket direct (e.g. FundsNetwork) then you won't get the annual rebates of the charges.

Good luck.