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Benefits of investing in Funds?

Professional Expertise - Fund Manager expertise and a team of analysts

Diversified risk due to combined investments

Low cost - You don't spend your money on advisor fees

More choice - different opportunities to meet your goals and objectives

Diversify your investments

If you invest in a single company share you are taking a high level of investment risk – there are many events that could impact the value of the share from a down turn in the market to the company itself making less profit than expected.

Investing in a fund means your money can be placed in a range of different investments alongside other investors. This can help you manage the risk of investment.

Rather than investing in a single company a typical fund will have between 30 and 100 investment holdings. Therefore, your investment is made up as a wide basket of assets.

The allocation of assets within each fund can be found in its fund report along with its investment objective and risk profile. Use our Fund Selector to search for a fund, click on its name and view the fund report.

Diversify your investments with Funds from TD Direct Investing

Funds key facts

Funds key facts

  • Funds are open-ended - the size and value vary according to demand and supply.
  • Pricing - Funds unlike shares, are priced once a day. The price you’ll see online represents the previous days price.
  • Understanding the fund - To help you choose the right fund for you make sure you understand the Key Investor Information Document (KIID), copies of these can be found in our Fund Selector
  • Retail Distribution Review (RDR) – Introduced by the Financial Conduct Authority in December 2012 to give investors clearer information about paying for investment advice and management. This included a new class of funds without any trail commission payment.
  • Clean funds – All funds that you can purchase through us are clean funds (no trail commission).
  • Dirty funds - You can't purchase dirty funds with us (funds that include trail commission). You can still hold these with us and you can get more information on each fund by reading the KIID.

Fund examples

Fund examples

To help you meet your short and long term financial goals, it’s important to start putting money aside early on and to save regularly. We've created two different examples here to help illustrate how your investing can change depending on many different factors.

Pete, 32

Lives in St Albans, works full time as a surveyor

Pete has gone through the ups and downs of saving for a house deposit, but now wants to make sure he's putting away smaller amounts when he can to keep building for the longer term.

For simplicity, he's using a Stocks & Shares ISA to get started. He's invested his £10,000 across a Fund of Funds to allow his portfolio to cover a more diverse range of markets, trusting the fund manager's expertise in selecting an ideal mix of different funds.

He checks his portfolio each week and keeps updated on his fund manager's strategy.

Susan, 58

Lives in Brighton, owns her own business

She is now looking ahead and shifting her focus from work to spending more time with family and travelling.

She took out a SIPP ten years ago to help plan and invest for her retirement. She has built up a £280,000 portfolio in the SIPP, boosted over time with some property sale proceeds.

She has built up a portfolio of 10 core unit trust holdings with different risk ratings. She reviews the fund manager's investment approach and core holdings on a regular basis.

Invest in Funds with a TD ISA, TD SIPP or TD Trading AccountWhich TD account do I need?

You can invest in Funds with a TD ISA, TD SIPP or TD Trading Account:

Understanding the risks

Remember that each fund is unique and hence exposed to different levels of risk. Some are relatively low risk, whilst others can be very risky and those will only be appropriate for more sophisticated investors.

The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest.

There may be a Fund Manager charge, which is a percentage of the value of your investment. This can differ depending on the fund. We charge a platform fee to cover the administrative cost of managing your funds.