[ClickPress, Wed Mar 06 2013] Almost a third (31 per cent) of DIY investors aren't aware that the way they buy financial products - direct from a provider or from a platform or fund supermarket
- can impact the cost of their investment, according to new research from Prudential*.
There does not yet appear to be the innovation in distribution that we see in the mutual fund market, where sales have grown through mutual fund supermarkets
and fee-based financial planners.
A FUND supermarkets
such as Cofunds offer you the option to hold funds from different fund managers within your ISA at no extra cost.
"The emergence of discount brokers and fund supermarkets
means that discerning investors can now save themselves hundreds, if not thousands, of pounds by avoiding these charges."
Discover ease and quality vehicles through fund supermarkets
"The drivers for growth are manifold: the A-Day rules allow really substantial investment contributions; the development of technology, such as online access to investment fund supermarkets
, has boosted the self investment market; and competition has drive SIPP administration costs down.
Investors using fund supermarkets
usually receive a discount on initial charges .
It is just one of the raft of savings accounts and investments currently available on the high street and via fund supermarkets
on the internet, that can be put inside an Isa wrapper for tax-free returns.
Charles Schwab, for example, has introduced mutual fund supermarkets
and no-fee IRAs, and will even dabble in a bit of personal finance advice.
The most popular distribution channel for UK domiciled funds was fund supermarkets
, representing 39 per cent of gross ISA sales, followed by sales forces and tied agents with a 33 per cent share of sales.
Internet-based fund supermarkets
which let you build your portfolio at the click of a mouse are set to revolutionise the way we invest.