Fund
What is a fund?
A fund is a single investment that holds many other investments inside it. When you buy into a fund, you own a small piece of everything it holds.
Why use a fund?
Funds let you spread your money across many investments with a single purchase. Instead of buying shares in 100 companies yourself, you buy one fund that holds all of them.
What types of fund are there?
An ETF (Exchange-Traded Fund) is a fund that trades on the stock exchange. An OEIC (Open-Ended Investment Company) is a fund you buy directly from the provider. An index fund is any fund that tracks a market index rather than trying to beat it.
How much does a fund cost?
Funds charge a yearly fee called an OCF (Ongoing Charges Figure). This goes to the fund provider (the company that runs the fund). The fee is taken automatically from your investment.
Scrimpr’s ISA comparison covers more platforms than any other UK guide.
Compare ISA Platforms →Key points about funds
- One investment, many holdings. Shares, bonds, or both
- Run by a fund provider who charges a yearly fee
- One purchase spreads your money across many companies