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    • Engineer87
    • By Engineer87 11th Jul 18, 10:35 PM
    • 27Posts
    • 5Thanks
    Engineer87
    Minimum investments to funds
    • #1
    • 11th Jul 18, 10:35 PM
    Minimum investments to funds 11th Jul 18 at 10:35 PM
    Good evening all,

    I have hopefully a simple question thats bugging me I'd like some help with please.. I currently invest spare monthly money via a S&S isa. At the moment I automatically drip feed 200 monthly into a vanguard fund. I'v only started dipping my toes the last year so still learning a lot.

    I'm now starting to read around with a view to eventually adding a second fund, feeding it in the same way as the first. Now my question:

    Take this fund for example which caught my eye:

    Lindsell Train LF Lindsell Train UK Equity Accumulation - GB00B18B9X76

    A quick read of the fund fact sheet seems to say that the minimum investment is 500,000...?

    Am I understanding that correctly to mean that I would personally have to invest that much in a transaction to be accepted?? And that it obviously won't be suitable for my investment philosophy?

    I just need someone to tell me if i'm misunderstanding it before I write it off.


    Many thanks for any help.
Page 1
    • bowlhead99
    • By bowlhead99 11th Jul 18, 10:58 PM
    • 8,295 Posts
    • 15,179 Thanks
    bowlhead99
    • #2
    • 11th Jul 18, 10:58 PM
    • #2
    • 11th Jul 18, 10:58 PM
    Funds are available in different 'classes' which may have slightly different level of management fee and criteria to be accepted as an investor. The cheaper ones designed for institutional investors (meaning the fund manager does not have to deal with lots of individual retail customers who just want to stick a few hundred quid in and are incredibly inefficient for a fund manager to service) will have high minimums.

    However, through your ISA (or even if not through an ISA) if you want to buy and hold a range of funds from a variety of managers, you'll be doing this through an intermediary - a funds platform. They will handle the relationship with the fund manager and in turn you and all their other small retail customers can stick a few hundred quid in and still collectively meet the 'must have half a million invested' criteria.

    Basically, buy the cheapest class made available to you on your platform, but you can typically disregard the one-off or regular investment minimums disclosed on a fund manager's own factsheet for the class - your funds platform will tell you what the minimum will be, and it might be e.g. 100 one-off or 25pm. The published 500k (or 10m, or whatever) bigger minimum is just so the manager doesn't have to offer it to small platforms or direct to individuals if he doesn't want to.

    Likewise he might reserve the right to make a one-off entry charge on the money you invest, but in practice, actually just agree with all the major platforms that it will be waived to nothing because nobody really gets away with initial charges any more apart from in exceptional circumstances.
    Last edited by bowlhead99; 11-07-2018 at 11:01 PM.
    • Engineer87
    • By Engineer87 12th Jul 18, 5:17 AM
    • 27 Posts
    • 5 Thanks
    Engineer87
    • #3
    • 12th Jul 18, 5:17 AM
    • #3
    • 12th Jul 18, 5:17 AM
    Thank you bowlhead99, much obliged.
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