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Fund Supermarkets
What are fund supermarkets?
Fund Supermarkets are typically a web site that can provide an alternative, more
convenient way of investing in collective investment funds. Like a
real life supermarket, the on-line counterparts have different goods on
offer and services, size and costs vary greatly.
Who are fund supermarkets suitable for?
In short, anyone for whom the underlying
investment is suitable.
What are the benefits?
Differences can be found in the number of funds
on offer, services and functionality. Most do not offer advice but do
provide research tools to help you decide which funds to invest
in. Many offer substantial discounts on the initial charges (or set up
charge) or the fund. Ongoing charges, such as annual fees are very
rarely discounted. Supermarkets offer ISA
wrappers, thereby allowing you to mix funds from several different
management groups into one ISA
wrapper. Many accept ISA
and PEP transfers.
What are the risks?
The risks associated with fund
supermarkets reflect the inherent risks involved with the underlying asset
class within the funds chosen.
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