quick start funds - your questions answered
we asked our Head of Investments, Rebecca O'Keeffe, to tell us more about the funds
your questions answered
- why did interactive investor choose these quick start funds
- how much does it cost to buy these quick start funds
- why does ii charge flat fees
- are there any incentives for ii to promote these funds
- funds explained
- the difference between active and passive funds
- how to invest in these funds
- how to open a new account
- can I invest through an ISA or SIPP
- regular investing in these funds
- holding other investments
- which fund is right for me
- what alternative investments could I consider
why did interactive investor choose quick start funds?
Vanguard’s LifeStrategy range are some of interactive investor’s most popular fund choices, but that is not the reason why the ii investment committee chose them for our quick start funds. Huge global diversification combined with a formidable track record, alongside a low annual cost, make these funds a great option for investors, in particular for those that are starting out or who have less time to research the market. All three of these funds are ready-made solutions.
The funds offer a relatively simple structure and stay very close to the strategic asset allocation, with re-balancing carried out so as an investor you will know the position of your chosen portfolio. The funds have consistently outperformed their sector average over short and longer time periods.
how much does it cost to buy the quick start funds?
Our customers make a quarterly payment of £22.50, and in return they receive £22.50 of trading credits. To buy and sell online is usually £10 a trade, which we reduce to £6 for your first 3 months.
If you want to invest regularly, then it costs just £1. Click here for full details of our charges.
why does interactive investor charge flat fees?
We believe that flat rate charges are simple, clear and fair. All fees erode the value of your portfolio, so it makes sense to try and pay as little as possible.
The more you invest, the more our fixed fees make sense.
are there any incentives for interactive investor to promote these funds to customers?
No. ii quick start funds and ii rated investments are picked purely on quality and performance and free of commercial incentives.
As a flat fee provider, interactive investor is completely neutral on any type of investment our investors choose to make. We don’t make any additional money promoting funds instead of equities or any other asset class.
what is a fund - how do they work?
A fund is a pool of investors' money run by a fund manager who invests on behalf of the customer, invested into different assets and professionally managed by the fund manager and their research team.
Each investor receives units, which represent a portion of the holdings of the fund.
what is the difference between active and passive funds?
An actively-management investment fund has an individual fund manager or a team of managers who make investment decisions for the fund.
Passive management of a fund intends to track the returns of an index, it doesn't have a fund management team making decisions.
Passive funds typically cost less than actively managed funds.
how can I invest in these funds?
Customers who already have an account with us can simply select the buy buttons and login to their account.
Customers who do not have an account with us yet can apply for an account. Applications take just a few minutes.
what information do I need to open an account?
To open a Trading Account you must be 18 or over and either a UK, Channel Islands or Isle of Man resident. You will need the following information.
• Your address details (last three years)
• Your National Insurance number
• Your debit card details.
can I invest in these funds in an ISA or SIPP?
Once you have an account with us you don’t pay any more for an ISA.
If you want to open a SIPP there is an additional charge of £100+VAT per annum. Click here to check all of our charges.
can I set up a regular investment to buy these funds monthly?
Yes. Our account allows you to invest regularly for just £1 per investment. This allows you to build up your investment portfolio in a simple, low-cost way to achieve your investment goals. It also ensures that you can balance your returns over the longer term, removing the worry of investing a lump sum.
Click here for more details.
can I also hold other investments alongside these funds?
Yes. Once you have an account with us you can choose to invest across a wide range of investment options including funds, investment trusts, ETFs, equities, including both the UK and a wide range of international markets, and bonds.
We also offer a range of tools and filters to try and make it easy for you to decide what investment options suit you.
which fund is right for me?
We don’t offer advice and any decision to invest is based on your own personal circumstances, including how long you intend to invest for and the amount of risk you are willing to take.
Each quick start fund has a factsheet detailing its asset allocation and objective.
what alternative investments could I consider?
We offer a fund search option that allows you to filter the range of available funds.
We also have the ii Rated Investments selection where we have chosen a range of active and passive funds, investment trusts, and ETFs to make up the ii rated investments list. Our aim is to help you identify collective investments with consistent returns, and those which we believe are good choices in the prevailing market environment.