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What are Funds

A fund is a collective investment such as a Unit Trust or OEIC (open ended investment company). Money is pooled together and invested in a range of assets such as shares and bonds, for example. This is done on your behalf by a professional Fund Manager.

Both unit trusts and OEICs are open-ended which means that the size and value of each fund can vary according to supply and demand. Investing in funds also allows you to diversify your portfolio without having to buy individual shares.

The value of the investment will vary according to the total value of the fund, which is determined by the investments the fund manager makes with the fund's money.

How do Unit Trusts & OEICs work?

When you invest in a Unit Trust you buy a unit, or a portion of the total fund. OEICs work slightly differently as they issue shares.

Unlike shares, funds are priced daily and are either dual priced (with a bid and offer price which will include any Fund Manager costs) or have a single price.

As funds are priced once a day, each fund will have a cut off point for new orders to be completed that day. Our cut off time will generally be one hour before the time prescribed by the Fund Manager. This is to allow time for orders to be processed. If you were to place a buy order for a fund after the cut off time for that day the order will be executed at the following day's price.

Investing in Funds

To find out about the costs involved in Funds investments, please read our Funds pricing page.

You can invest into a unit trust or OEIC through one of our accounts such as the Trading AccountTD Trading ISA or even the TD SIPP. Go to Choose An Account to find out more about the accounts we have available to you.

If you already have an account buying and selling funds is easy and can be done in two ways:

  1. Login to your account and use the Fund Quickrank tool.  To find this tool go to Markets & Research and choose the Funds heading.
  2. Or once logged in to your account, click on the ‘Start Trading Now’ button or go to the Place an Order section and select ‘UK Funds’ from the market options and then enter the specific fund details.

Essential Information


The Retail Distribution Review - What it means for you
On 31 December 2012 the Financial Conduct Authority (FCA) introduced new consumer legislation to give investors clearer information about paying for investment advice and management. A key change was the introduction of clean funds that don’t include any trail commission payments.

We support the new legislation as we believe it promotes fair and transparent pricing for all customers. We were one of the first companies to start rebating trail commission payments and to introduce a wide range of clean funds.

Key Investor Information


The Key Investor Information Document (KIID) has been created to provide you with clear, easy to understand information about each fund in a standard format that makes comparison of products easier.

How to read a KIID
This is a document designed to help you understand the KIID. Copies of all KIIDs can be found under Investor Disclosure Document column on the Fund Selector.

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Risks

  • The value of your investments can go down as well as up. You may not get back all the money that you invest.
  • Please note the tax treatment of these products depends on the individual circumstance of each customer and may be subject to change in future.
  • A percentage of the value of your investment may be charged by the Fund Manager. To view these charges (Ongoing Charges), please refer to the relevant KIID.

Funds eGuide


Learn more about investing in Funds by downloading our free guide.

Or view all our eGuides.