To buy into a fund and then sell your shares when you’re ready to do so, you’ll likely need to use a fund supermarket or investment platform. All investment platforms are online and are essentially your one-stop-shop for investing. You can purchase and hold funds using these types of platforms, and they typically allow you access to a wide range of funds.
Selling funds is just as easy as purchasing them. When you log in to your account, you’ll be able to see all the funds you hold and will usually simply be able to sell them from there. However, you should be aware that funds are typically not sold until the following day.
Do investment funds charge a fee?
The platform you sign up to will either charge a flat fee or a fixed fee for each transaction. A flat fee is usually for investors who put over £50,000 into their chosen fund. The fees you’ll incur for using the platform are typically charged quarterly or monthly, and it’s important to check all the fees before you sign up to anything.
If you have a fund manager, you may be charged an annual management charge. This charge is usually percentage based and averages between 0.75% and 1.25% for most actively-managed funds. The fund manager usually publishes their fees daily, and the fee also reflects the performance of the fund. Conversely, with a passive investment fund, fees tend to be lower – between 0.1% and 0.85%, which typically covers the fee for using your chosen investment platform.
