Why use a Fund supermarket?
Fund supermarkets make it easy and convenient for you to invest in ISAs, SIPPs and funds using funds from different companies. In fact, you can only invest your annual ISA allowance across different companies this way. Maybe this is why more than half of new fund investments are now arranged through fund supermarkets.
- Fund supermarkets offer low charges, more choice and flexibility and less paperwork – Cofunds and FundsNetwork offer all this at no extra cost.
- You can invest in ISAs, SIPPs, Investment Bonds, or just the funds themselves – often referred to as unwrapped or simply investment funds.
- Cofunds and Fidelity FundsNetwork accept lump sum applications online – anytime. If you prefer to invest by paper application – you have to for
monthly savings – you can use any fund supermarket.
- You can view all your fund supermarket investments online – consolidated paper valuations are sent at least once a year.
- You can switch between funds cheaply and easily – usually 0.25%. Skandia Investment Solutions switches are free.
- You can transfer most of your existing funds into a fund supermarket – free of charge – using a process called re-registration.
- If you hold your ISAs in a fund supermarket, you can avoid problems associated with ISA transfers. If you want to transfer your ISA from one
fund company to another, it can take up to 30 days. And you can be out of the market for some time. Within a fund supermarket, you simply switch
from one to the other.
- All the fund supermarkets offer a handy cash reserve facility. This is ideal if you want to use your ISA allowance but haven’t decided what funds
you want to invest in.