Research
TD Waterhouse Fund Supermarket
TD Waterhouse customers can trade within the TD Waterhouse Fund Supermarket which gives you access to over 400 Unit Trusts and OEICs from the UK's top fund providers.
Our Financial Express research tool allows you to research funds and their past performance. We do not charge dealing commission on Unit Trust trades and we reduce initial sales charges (which can be up to 5.5%, by at least 57% and up to 100%).
Access to the TD Waterhouse Fund Supermarket is online or via the telephone and you can trade with a Trading Account, Trading Plus, ISA or SIPP Account.
Protecting your Investments From Tax
With the TD Waterhouse Trading ISA you can make your investments tax efficient. The ISA is simply a haven to hold unit trusts, shares, investment trusts, gilts and bonds, protecting them all from tax. Traditionally fund managers have only allowed you to hold their own funds in their ISA wrapper. This limits your choice, restricting you to their own branded funds and giving you no flexibility to mix and match unit trusts with shares or any other stockmarket investment. However by opening a TD Waterhouse Trading ISA you choose the types of investment and we provide the tax shelter.
Fund Supermarket FAQs
The frequently asked questions about the Fund Supermarket are listed below:
- How do I place a trade in the Fund Supermarket?
- How do I access the Fund Supermarket Research?
- What is a Fund?
- What are the advantages of investing in a Fund?
- What are the settlement periods for buying and selling Funds?
- What is the minimum investment in a Supermarket Fund?
- What are Initial Sales Charges?
- What about Funds not in the Fund Supermarket?
How do I place a trade in the Fund Supermarket?
Simply go to the trading area. You can buy and sell all your Funds from here. Alternatively by telephone (0845 607 6002). Our trained Unit Trust Investment Representatives will be happy to answer additional questions.
How do I access the Fund Supermarket Research?
All our Fund research can be accessed from the Research Tools section.
What is a Fund?
A Fund comprises of a basket of underlying securities. The Fund Manager will build their Fund according to a specific mandate, using a mixture of appropriate gilts, bonds, equities and cash in order to achieve their Fund objective. As an investor you can purchase units in a Fund and automatically have your investment spread across the underlying securities.
In the United Kingdom Funds are more commonly known as either Unit Trusts or OEIC's (Open Ended Investment Companies). Although Unit Trusts and OEIC's are very similar there is one Fundamental difference, Unit Trusts have a buy price and a sell price (bid/offer spread) where as OEIC's simply have one price. To discuss Unit Trusts and OEIC's further please call a Unit Trust representative on 0845 607 6002.
What are the advantages of investing in a Fund?
Past performance of Unit Trusts and OEICs show that appropriately mixed portfolios of funds can outperform traditional Bank/Building Society savings accounts over the medium to long term. Although they can give excellent returns, there is the risk that the value of the investment can fall as well as rise, as with any securities-based investment. Hence selecting the right Fund is an important consideration, although past performance is no guarantee of future performance. However, because Unit Trusts and OEICs spread their investment and are professionally managed, they are viewed as less risky than individual stocks and shares.
What are the settlement periods for buying and selling Funds?
In the Fund Supermarket the normal settlement period will be T+3, with some Fund Companies at T+4. Non-Supermarket Funds are T+4.
Normal dealing rules apply for dealing via Telephone and WebBrokerTM.
What is the minimum investment in a Supermarket Fund?
£500 per Fund initially. After the initial investment in the Fund, there is no minimum subsequent investment in the same Fund.
What are initial sales charges?
When Fund Companies sell their Funds direct to customers they charge an "initial sales charge" which can be as high as 5.5%. The Fund Supermarket discounts this charge for your benefit at least 57% and as high as 100% on certain Funds:
NB: Unlike shares, There are no dealing commission charges on buying or selling Funds. The discount is passed on to you in the form of additional units.
Example:
You wish to invest £5000 into XYZ Unit Trust
Buying at the full initial sales charge of 5.5% (£275), £4725 would be invested into the Unit Trust. Buying through TD Waterhouse at a discounted initial sales charge of 1.5% (£75), £4925 would be invested into the Unit Trust ... saving you £200!
The result ... you get more units for the same amount of your money!
What about Funds not in the Fund Supermarket?
If you wish to purchase a Fund not currently in the Fund Supermarket please call us on 0845 607 6002. We are able to source most UK Unit Trusts and OEICs, although these are not available online.
