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Article: Cut ISA costs: unit trust benefits without high charges using IShares and ETFs--if you are thinking about buying a unit trust with your ISA this year, award-winning stockbrokers Hoodless Brennan show you how to cut costs.
- Article from:
- What Investment
- Article date:
- March 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Vitesse Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Investors traditionally opt to invest in unit trust ISAs to diversify risk, target capital growth and avoid capital gains tax (CGT). These products are attractive with a wide range to choose from, but the cost is high. However, holding IShares and ETFs within a self-select ISA can offer an equally diversified, flexible and cheaper option.
The popularity of unit trust ISAs is based on their range of investment options and the professional management they provide, but this comes at a cost. Usually they charge an initial investment fee of around 5 per cent of your investment and an annual management charge (AMC) of around 1.5 per cent every year to manage that ...