Your money-making expert. Financial journalist, TV and radio personality.
Fund supermarkets are a good way to invest in companies and funds quite cheaply.
They all have different fee structures and it’s worth reading up about them to find out which would be the best for you.
We’ll look at what they are, how to get started, and some of the options on the market right now.
Fund supermarkets are investment firms or brokerages where you can shop around a wide variety of different kinds of fund and fund families in one place.
They are like a catalogue for funds so you can browse around and choose the ones you want,
Costs to invest in the funds are kept so low compared to other investment routes because, like Tesco and Aldi, these supermarkets can buy in bulk and sell them to you at a lower cost than independent ‘stores’ (brokers).
Through fund supermarkets, you also get access to an extensive range of top-performing funds.
Investors like to use them because of the variety of opportunities for investing in different asset classes, holdings and products that could be domestically-focused or international.
Whether you’re a high net-worth investor with fingers in a lot of pies or a DIY investor using a discount brokerage, you are likely to use a fund supermarket platform to access some investment opportunities.
To start trading,
The best fund supermarket for you depends on
Some fund supermarkets, for example, may not let you purchase ETF or index trackers.
So, before you set up an account, make sure you know what investment products you want to purchase and make sure your fund supermarket offers them.
Fund supermarket AJ Bell was founded in Manchester in 1995. The platform has grown steadily since its launch and is now, itself, part of the FTSE 250 index, making it one of the UK’s biggest companies and a heavy hitter in the fund world.
As well as enabling investors to create their own portfolios, AJ Bell offers a range of their own nine funds
The minimum investment you can make into any AJ Bell fund is just £1.
You can also set up a regular investment, which lets you invest £25 or more each month.
When you buy an AJ Bell fund, you won’t pay a dealing charge. The custody charge – what you pay for holding the investment in your account is the same as for any other fund.
AJ Bell charges on a sliding scale.
There is also an annual ongoing charge for managing the fund, which is capped at 0.35% for the six growth funds and 1.00% for the two income funds and the Responsible Growth fund.
his charge comes directly out of the fund itself and will reduce as the fund grows in size. This is because a larger fund is more affordable to manage – and it’s our policy to pass this saving onto you, the investor.
Interactive Investor is the UK’s second biggest stockbroker and is regulated by the FCA. It was founded in 1995, and was incorporated in its current form in 2003.
It’s a handy platform if you’re looking for a specific type of ISA or Self Invested Personal Pension (SIPP) account.
Interactive Investor has a long track record in the industry and is considered a safe bet in terms of its products and advice.
According to its website, it gives you access to more than 40,000 UK and global stocks, as well as tools and analysis to help you choose your investments if you need it.
Fidelity is one of the heavier hitters on this list of fund supermarkets, as one of the biggest managers in the world. The US-founded platform is a major force in the online brokerage space.
In recent years it has streamlined its approach, increasing its focus on quality and cash management to help clients improve their returns.
Clients might choose Fidelity for its deep pool of research and resources available for investors to draw on, as well as its asset screeners which help narrow down choice.
he maximum fee you will pay for all of your personal accounts is £2,000 a year.
Charles Stanley Direct was established in 1792 and is one of the oldest firms on the London Stock Exchange. The platform provides wealth management services to private clients, charities and smaller institutions.
It is the DIY or ‘execution only’ arm of wealth manager Charles Stanley and lets investors get a look in on funds and regulated financial advice from its parent company if desired.
Bestinvest is a platform that provides execution-only services, primarily to private investors, including ISA and pension options.
The website has guides and investment research available and a range of ready-made portfolios and pre-packaged investment choices on offer. It also has funds from different groups and individual company shares.
There’s a fair bit of technical information and fund research, so it’s more likely to suit those that are more experienced.
Jasmine Birtles’ MoneyMagpie webinars are the perfect place to learn about investing from industry experts, and give you the confidence to start investing your cash. You will learn how to get yourself ready for investing, how to save and how to invest like the City guys!
Some of the topics covered include:
You can bring any questions you like – none are too dumb – and Jasmine will also point you to websites and services that can give you more help and information.
Keep an eye out on the website or social media channels for what’s coming up next.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.