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If you are looking to start investing in the markets or would like help with managing your investments then funds or collective investments are worth considering for your portfolio.
One of the major advantages of funds is they allow you to cost-effectively build a diversified portfolio. By investing even a few hundred pounds in a fund you can get exposure to far more companies and indices than you could by putting money directly in the market yourself.
In addition the vast range of funds available allows you to choose a particular geographic market, a range of industry sectors or a specialist asset class such as bonds to suit your investment objectives.
There are two main types of funds – active and passive.
Active funds are run by a professional fund manager, who selects what goes in the portfolio. The aim is to beat their benchmark index and outperform the market, to give you premium returns.
Passive or tracker funds aim to mirror, or track, the performance of a key benchmark or index such as the FTSE 100.
When buying funds you will often see the acronyms ‘Inc’ or ‘Acc’ after the name of the fund which indicate the different classes of funds. You can choose which type of units to buy to suit your investment strategy and time horizon.
An 'income' class class pays out dividends directly into your Dealing account, ISA or SIPP
An 'accumulation' class, rolls up dividends and other forms of income and puts them back into the fund, with the effect of increasing the value of each unit or share held
With over 2,000 funds to choose from with us and a vast range of different types of funds it can be daunting to find the right fund to meet your investment objectives. We have created the Favourite funds list which is our picks of the best funds. You can filter the list to help you create a shortlist and easily access the fund factsheets, Key Information Document (KID or KIID) and analyst reports to help with your research. The AJ Bell Favourite funds list is not a personal recommendation.View Favourite funds list
It is simple to invest in a fund online. You will need to open an account first and then choose the fund you are interested in investing in. There are over 2,000 funds to choose from but to make it easier for you we have created the AJ Bell Favourite funds list which is our picks of the best funds.
There is a £1.50 dealing charge for buying and selling funds with us and a custody charge for holding the fund. In addition you will pay a charge to the fund which is often called the fund manager's charge. These charges are included in the fund price and can be found on the fund factsheet. To view our costs for dealing and holding funds please .
You can save from £25 per month into a wide range of funds with our regular investment service. You set up the instruction online and we will invest each month for you into the fund of your choice. This is a great way to save regularly and build up your portfolio. For more information please visit our regular investment page.