Which type of OEIC should I buy

[doug2500]

Afternoon all,

A family member has opened an account with Iweb and I'm suggesting some investments. Iweb offers different units for some some shares so e.g. Fundsmith is available in all 6 options, or 3 if we discount inc units. So my question is why wouldn't you buy the institutional shares with their lower charges? Is there any reason you should just stick to T shares, obviously you wouldn't buy Retail units unless you had to.

Thanks

[Pendrainllwyn]

Yes, with lower fees it is better to own the Institutional Shares. The Fundsmith prospectus states that you need to invest a minimum of GBP 5,000,000 to invest in the Institutional shares. Deterrent enough for many. Maybe investing through IWeb provides some way around that.

[Pendrainllwyn]

Thanks Fred. Then I cannot see any reason why one wouldn't want to take advantage of that.

[OhNoNotimAgain]

You might find this of interest in relation platform selection

https://henrytapper.com/2018/05/20/what ... ent-126494

[Backache]

I realise you are just using Fundsmith as an example and may not be intending to invest in them , but if you are You can invest directly with Fundsmith with no platform charges , though the Institutional option is not available to anyone other than the very rich obviously. But unless the platform charges are very low it may be cheaper to do this than invest in the institutional units with platform charges.

[Backache]

I realise you are just using Fundsmith as an example and may not be intending to invest in them , but if you are You can invest directly with Fundsmith with no platform charges , though the Institutional option is not available to anyone other than the very rich obviously. But unless the platform charges are very low it may be cheaper to do this than invest in the institutional units with platform charges.

On the other hand, if you have investments on a fixed price platform like II or Alliance, then you can invest in the "I" shares class with no effect at all on your platform charges.

Very true, though I think you have to pay dealing charges with some.