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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 11569
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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What is a funds supermarket

Customer Question

Hi,
What is a funds supermarket
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.
Hi,...A fund supermarket is a platform that allows you to buy, sell and hold investment funds. Your account is usually managed online, although some offer a phone service....In the UK, you can hold your funds through the platform within an ISA a SIPP, OR a general investment account....Typically, the biggest advantage of a fund supermarket is cost....If you buy a fund direct from the fund provider (retail), you'll typically pay an up front charge of 4 to 5%. Fund supermarkets discount this initial charge, usually to zero....The supermarket itself, however, has a charge....The main fees you will pay fall into two types: annual fees and dealing fees....Annual fees may be charged as a flat fee, for example £100 a year, or as a percentage of the value of all the funds you hold, typically somewhere between 0.25 and 0.45 per cent ( I would submit that if you're paying more than this, you're being overcharged)....Those Percentage fees are many times capped, so there's a limit to how much you pay. They may also be multi-tiered, so you pay a lower percentage fee if you have more money with the fund supermarket....Hope this helps ... Let me know if you have questions...I work in the finance, tax, estate, business (and related legal) categories for all common-law countries....If this HAS helped, (and you don't have any other questions on this), I'd really appreciate a positive rating (using those stars on your screen) … That's the only way I'll be credited with a portion of what you've paid JustAnswer.com...Thank you,Lane.
Expert:  Lane replied 1 year ago.
By the way ,the dealing fees are usually flat, for example £10 per trade. You'll pay this when you buy or sell funds or other investments. ... and not ALL supermarkets charge a dealer fee ... Those fund supermarkets, however, may have higher ongoing (annual) fees....So you should think through how much dealing (buying and selling) you will be doing and THEN make your decision based on TOTAL cost (as it relates to choosing one fund supermarket over another)...Lane.
Expert:  Lane replied 1 year ago.
Hi,….I'm just checking back in to see how things are going.….Did my answer help?….Let me know…….Lane...