Simple Question on Funds

[evilbungle]

Hi all, Just a very quick and basic question - but I am not sure where to look and google isn't helping.

I have been investing in individual shares for a while now but am starting to run out of ideas of companies I feel comfortable with so I am thinking that I will maybe start to add some funds, but although I have heard people saying they hold them I am not 100% sure how they work.

It seems that they mostly have regular fees, do these get taken out before any payments are made out? or will I need to pay money in regularly to cover the fees? If in the first option the fees are larger than the payments would I then need to pay the extra?

Is there an easy way to look up what funds are available? And can I buy them all through my usual account (I Web) or will I need a new account?

I feel like these are all simple things I should know but just can't find somewhere easy to find the information I need.

Thanks for any help.

[Alaric]

Is there an easy way to look up what funds are available? And can I buy them all through my usual account (I Web) or will I need a new account?

I would expect iweb to have a list of what they offer and research material on them.

You would pay dealing commission as for buying and selling shares except that for OEICs (aka Unit Trusts) some platforms charge an additional fee as a capped percentage of value and allow OEIC trades at zero cost.

Charges made by funds itself are internal, in other words the return you see is after charges have been deducted. That's why they are required to disclose them in various "key features" documents.

No doubt you are aware that the term "funds" can cover all of Investment Trusts, Unit Trusts, Open ended Investment Companies, Exchange Traded Funds etc.

[monabri]

Through iWeb you can buy a variety of "funds" just like you might buy shares in individual companies ..other than they will ask you to confirm that you have read the info on the fund.

You wont need a new account- if you buy a fund, iWeb will display it just as if you had bought shares in RDSB , for example.

The "costs" are relevant but you don't have to stump up x% per annum out of your own cash fund in iWeb...the fund manager takes these costs from the returns on investments . Obviously, if the manager is taking a big cut, there might be less left for you..

If you are considering Investment Trusts ...look to the AIC website.

I also use Hargreaves Lansdown's website for other research into other funds ( ETFs ).

What are you considering?

[evilbungle]

Thanks both, Good to know that the charges are taken out before the payments are made so it wont be extra.

I will look up what Funds are available on IWeb and then research them from there.

Thank you.

[sloth]

This might help: https://www.youtube.com/watch?v=sTldg7ENEiA&t=448s

[doug2500]

I would consider investment trusts too.

The advantages are that they are traded and behave like the shares you are used to. I always get frustrated with funds: daily dealing, opaque charges and strange performance graphs.

Where there are the 'same' IT and fund e.g. Standard life smaller companies the IT often outperforms the fund.