Essential information
New regulations – Retail Distribution Review (RDR) - are being introduced by the Financial Services Authority (FSA) from the end of 2012. This means the investment industry is changing.
The main impact of RDR on funds is the move to a fully transparent charging structure for these products. We will now charge a separately disclosed platform fee for our services.
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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 the Documents or Filings heading on the Fund Quickrank tool.
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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
You can invest into a unit trust or OEIC through one of our accounts such as the Trading Account, TD 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:
- Login to your account and use the Fund Quickrank tool. To find this tool go to Markets & Research and choose the Funds heading.
- 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.
