Question
I want to invest a monthly amount into an ISA. I am thinking of the Marlborough Special Situations Fund which has a good performance but 5% initial charges. I have read of discount brokers where this can be avoided altogether. However, I can't see how this can be avoided with a monthly plan. I probably want to invest about £200 per month. If the initial charge can't be avoided through a discount broker or money supermarket with monthly investment I would probably be better going for a lower performing fund that does offer 0% initial charges on monthly contributions.
i am happy to go for a higher risk fund like this one as I am looking long term - I am fairly familiar with investments types but am a little out of touch with what is available in terms of charges etc but I am currently re-mortgaging so need to up my monthly saving for paying off the mortgage.
Many thanks in anticipation!Answer
Discount brokers should be able to reduce or wipe out a fund initial charge and a few will also reduce the annual charge via trail commission rebates. It doesn't normally matter whether the money is invested as a lump sum or monthly unless the broker charges a dealing fee when buying funds (e.g. Alliance Trust).
So a monthly saving into Marlborough Special Situations via discount brokers like Cavendish Online, Club Finance and Hargreaves Lansdown should ensure no initial charge and trail commission rebates - take a look at our Guide to ISA Discount Brokers for more details.
Marlborough Special Situations is a higher risk fund investing in smaller companies, including those listed on AiM. This gives some cause for concern in the current climate, but manager Giles Hargreave has an exceptional track record so provided you're comfortable investing for 5-10 years (and riding out the inevitable storms along the way) it should hopefully prove to be a profitable long term investment. A monthly saving is no bad thing for this type of fund as it can help smooth volatility.
I want to invest a monthly amount into an ISA. I am thinking of the Marlborough Special Situations Fund which has a good performance but 5% initial charges. I have read of discount brokers where this can be avoided altogether. However, I can't see how this can be avoided with a monthly plan. I probably want to invest about £200 per month. If the initial charge can't be avoided through a discount broker or money supermarket with monthly investment I would probably be better going for a lower performing fund that does offer 0% initial charges on monthly contributions.
i am happy to go for a higher risk fund like this one as I am looking long term - I am fairly familiar with investments types but am a little out of touch with what is available in terms of charges etc but I am currently re-mortgaging so need to up my monthly saving for paying off the mortgage.
Many thanks in anticipation!Answer
Discount brokers should be able to reduce or wipe out a fund initial charge and a few will also reduce the annual charge via trail commission rebates. It doesn't normally matter whether the money is invested as a lump sum or monthly unless the broker charges a dealing fee when buying funds (e.g. Alliance Trust).
So a monthly saving into Marlborough Special Situations via discount brokers like Cavendish Online, Club Finance and Hargreaves Lansdown should ensure no initial charge and trail commission rebates - take a look at our Guide to ISA Discount Brokers for more details.
Marlborough Special Situations is a higher risk fund investing in smaller companies, including those listed on AiM. This gives some cause for concern in the current climate, but manager Giles Hargreave has an exceptional track record so provided you're comfortable investing for 5-10 years (and riding out the inevitable storms along the way) it should hopefully prove to be a profitable long term investment. A monthly saving is no bad thing for this type of fund as it can help smooth volatility.
Read this Q and A at http://www.candidmoney.com/questions/question548.aspx
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