Unit trusts and OEICs
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26. Where to buy unit trusts and OEICs
Funds can be bought through a variety of channels, with or without advice. Your choices are:
- Directly from the fund provider without advice. You may be able to negotiate a reduction in charges, but not all providers go along with this.
- From the fund provider through a company representative, with advice.
- Through an Independent Financial Adviser (IFA) with or without advice. The best website for finding an IFA in your area is Moneyextra (www.moneyextra.com).
- Through a Discount Broker (IFA) without advice and a rebate in commission. The Find directory website (www.find.co.uk) will give you plenty of choice.
- Over the Internet without advice. Providers are a bit reluctant to let you apply online. When they do, the scale of your investment is usually restricted to ISA limits, which currently means £7,200 or less (increasing to £10,200 from October for the over 50s, and in April 2010 for everyone else).
- From a panel of providers on a 'Funds Supermarket' website without advice. The reality is more panel provider than supermarket at present. You should be able to package several funds from several providers in an ISA. Expect to pay a reduced or even zero initial charge, but the annual management charge is likely to remain.
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