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Frequently Asked Questions

• What is a fund?

  A fund is a type of collective investment scheme. Investors' capital is pooled together and managed by a professional fund manager, and each investor is issued units in the fund, representing the proportion of the underlying investments they own.

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• Why invest in funds?

  Funds are popular with investors because they offer access to a ready-made investment portfolio run by an expert in their field. You can normally invest from £500 or £50 per month, and get instant access to a diversified portfolio for a much lower cost than purchasing the individual investments yourself.

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• How do I buy funds?

  Once you have opened an account, it is straightforward and secure to place a deal. Please ensure you have read the fund's Key Investor Information Document first which is available from the individual fund factsheets on the website.

  1. Log in or call our experienced dealers
  Log in to your secure online account or call our experienced dealers on 0117 980 9800.

  2. Select the account in which you wish to deal
  Select either the Fund & Share Account, Stocks & Shares ISA or SIPP.

  3. Choose your investment and deal value
  Find your fund online and enter the value you're looking to invest. Alternatively, provide your dealer with these details by telephone. When dealing online, you will also need to enter your trading password.

  4. Confirm the deal
  The details of the deal will be provided for you to check. Confirm you're happy with the fund name and value to be invested and the deal is done. We will send you a contract note either by post or you can download it online - whichever you prefer.

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• What is the difference between income and accumulation units?

  The type of unit you hold determines how any income generated from the fund's underlying investments is treated.

  With income units, income is paid out to fund holders as cash. This could provide the investor with an income stream or the cash could be reinvested to buy additional units.

  With accumulation units income is retained within the fund and reinvested, increasing the price of the units. Generally, for investors who wish to reinvest income, accumulation units offer a more convenient and cost-effective way of doing so.

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• What is the historic/distribution/underlying yield?

  The historic yield is calculated by looking at the income the fund has paid over the last year and dividing it by the latest unit price.

  The distribution yield is an estimate of the income that may be expected to be received over the next twelve months divided by the current unit price and based on a snapshot of the portfolio on that day. It does not include any charges.

  The underlying yield is calculated in much the same way as the distribution yield, but also includes the effect of any deduction of expenses.

  See our free Guide to Fund Prices, Savings & Yields for a more detailed explanation.

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