'Fund supermarkets', cashing out and exit fees

krett

I am considering investing in a 'fund supermarket'-style S&S ISA such as those offered by Cavendish Online or Charles Stanley Direct. I am new to investing, however, and I find fees confusing. Right now I am trying to understand how I would be able to cash out from such funds and what fees I would need to pay.

First, can I sell part of the funds that I own and withdraw the cash at any time? If not, what are the limitations?

Second, most investment platforms have 'exit fees' - but at what point are they actually charged? On the internet they tend to be described as fees charged for switching providers, but are they also charged when I just want to sell out? If not, then why would anybody bother transferring funds between providers if they could just sell out from one and invest the cash with another?

Third, what if within a single 'supermarket' I decide to sell my share of one fund and buy another instead - will it incur any fees?

Any help understanding these intricacies will be appreciated

xylophone

Platform charges....

http://monevator.com/compare-uk-cheapest-online-brokers/

You can sell within your SIPP/ISA - you might pay a dealing charge or you might not - see above.

You can have proceeds remitted to your bank account.

You might pay a closure fee/transfer fee - or you might not - see above.

AnotherJoe

krett wrote: »

I am considering investing in a 'fund supermarket'-style S&S ISA such as those offered by Cavendish Online or Charles Stanley Direct. I am new to investing, however, and I find fees confusing. Right now I am trying to understand how I would be able to cash out from such funds and what fees I would need to pay.

First, can I sell part of the funds that I own and withdraw the cash at any time? If not, what are the limitations?

Second, most investment platforms have 'exit fees' - but at what point are they actually charged? On the internet they tend to be described as fees charged for switching providers, but are they also charged when I just want to sell out? If not, then why would anybody bother transferring funds between providers if they could just sell out from one and invest the cash with another?

Because that would wipe out ISA allowances and you shoudl have your funds in a tax free "wrapper" like an ISA if at all possible.

You might have £100k in an ISA accumulated over years.

If you cashed it in and then wanted to buy in another ISA, you could only invest £20k in another ISA that tax year and potentially nothing if you already invested in that or another ISA that tax year.

If you are starting off investing, then worrying about what happens if you "cash out" as if you had a betting account ,suggests you either shouldn't be investing, or you are worrying about trivia that dont matter rather than the fundamentals of what to invest in.