Recovery Fund How to Invest

tightasagnats

Hello folks.

How would someone invest in something like R&M UK Equity Long Term Recovery fund? I've had S&S ISAs before, using XO and Nutmeg.

Could I invest using XO in this fund, within a S&S ISA? Or do you invest directly with R&M? Only picked individual stock before or used that picked by the broker.

Many thanks

bowlhead99

X-O is an 'execution only' stockbroker which allows you to buy financial instruments which are traded on a stock exchange (such as shares of companies or investment trusts or other exchange-traded funds and commodity vehicles). You place an order and the broker goes and tries to buy it for you off someone else who wants to sell.

The R&M fund you mentioned is an open ended fund. You would buy it from a provider who offers a 'fund platform' to allow you to subscribe to, redeem from or generally just hold an investment in the fund via their system. You place an order and they tell the manager you want in, and the next time that River & Mercantile calculate the net asset value of the fund (which happens on a daily basis) they will issue you the appropriate number of shares or units for the amount of money you wanted to subscribe at the price they've just calculated.

So, as X-O only let you buy things traded on the london stock exchange, and Nutmeg only allow you to buy their own products, you need a general fund platform or fund supermarket. Examples would be

AJBell's "Youinvest" https://www.youinvest.co.uk/market-research/FUND:B614J05 or

Halifax Sharedealing's offering https://www.halifaxfundscentre.co.uk/index.php?section=sheet&idShareclass=F000002OAX or

Charles Stanley Direct's offering https://www.charles-stanley-direct.co.uk/ViewFund?Sedol=B614J05&Isin=GB00B614J053

TD Direct Investing's offering https://www.tddirectinvesting.co.uk/investment-funds/selector


All of them offer fund platform services including some basic research information as well as stockbroker services if you want to hold individual companies, and give you the choice of using an ISA, a SIPP, or just a general investment account outside a tax wrapper.

Halifax is most like X-O in terms of charging you a fee for every time you transact (subscribe or redeem - i.e. buy and sell) and they have a small fixed annual fee for doing it within an ISA. Youinvest charge you a much smaller fee every time you transact but have an ongoing annual fee for anything held via the fund platform which is 0.25%. Charles Stanley Direct have the 0.25% ongoing charge based on fund value held but no transaction fees. TD Direct likewise but 0.3% for holding funds (but have better stockbroking facilities if most of what you do is sharetrading).

There are a whole range of fee models out there and different levels of service. Not all platforms carry all funds you might want (Halifax is missing a few I've looked for) but you can usually find out in advance if they have it.

tightasagnats

Thank you that's a very helpful response, much appreciated.