In recent times, there has been something of a revolution in the way that you can buy Investment Trust shares.
Investment trading platforms are often known as ‘fund supermarkets’ as they are online shops where you can buy and sell a comprehensive range of investments, including Investment Trusts, Open Ended Investment Companies (OEICs) and Unit Trusts - as well as in the shares of listed companies. Of course, many investors don’t want to go truly ‘DIY’. You can use a financial adviser to open and look after your platform account, as well as your underlying investment decisions. You will pay a fee for this service, determined by the scope of the service being offered.
Many online platforms allow you to deal in shares in ‘real time’ and some offer an option to invest regularly each month as well as lump sums. Many providers allow you to buy and hold your shares within an Individual Savings Account (ISA), Junior ISA or Self Invested Personal Pension (SIPP), all of which have potential tax advantages. Or you can simply deal in your chosen shares without the tax advantages but also without any limits on how much you can invest.
The decision on which platform to use is an important one: make sure to consider the overall level of fees as well as the range of services available from your chosen provider. Don’t forget that cheapest is not always best - and that some platforms have flat fees while others levy percentage-based charges. Typically, you will also pay a fee every time you buy and sell shares, so you need to bear in mind these costs too if you are trading frequently.
Before your make your final platform decision, remember to do your homework and bear in mind the following points:
Visit ‘How to Invest’ on our Trusts’ websites where you’ll find links to a number of leading platforms. You may also want to visit the Association of Investment Companies website as they have produced excellent research on choosing the best platform, based on different criteria. You can access the research here.
And, finally, don’t forget that taking financial advice may be the most sensible way forward in the long run.