Fidelity Moneybuilder Index Fund

...So where to look? Well Fidelity Moneybuilder Index Fund fits the bill for me. It is available from Fidelity's Funds Network which is a supermarket of investment funds with over 950 different funds from 55 fund managers.

Fidelity Moneybuilder UK index
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Aims to track the FTSE all share index which means it invests in the Large FTSE 100 companies down to smaller companies in the ...
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On the fidelity website you have a very useful feature that gives you an overview of each fund.
Over five years the fund has returned 4.9% now remember that the market fell 28% from 2001-2002
over three years the fund returned 23.6% and over a year 27%

Charges

Now this is where Fidelity score over the competition.
There is no initial charge on ISA and ISA/PEP transfers or non ISA holdings.
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If you have read the weekend business sections of the papers you maybe forgiven for thinking every fund manager is after your hard earned cash. Your right, although ISA investment inflows have increased this year with the boyant markets, they are still well down on previous years, and with 4 (well nearly 3) days to go until the 2005/06 tax year end , they want your money.
There is a vast and somewhat confusing array of funds available, each perporting to be the best investment choice.
But take a closer look when choosing the fund for you.
One very important thing to check is how much are they charging for investing your money?
If you are not careful you could end up paying anything up 7 or 8% what with initial charges, management fees, bid/offer spread. So your fund would have to make 10% to make any investment worthwhile.

So where to look? Well Fidelity Moneybuilder Index Fund fits the bill for me. It is available from Fidelity's Funds Network which is a supermarket of investment funds with over 950 different funds from 55 fund managers.

Fidelity Moneybuilder UK index
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Aims to track the FTSE all share index which means it invests in the Large FTSE 100 companies down to smaller companies in the main market, but not AIM market stocks.

Performance

On the fidelity website you have a very useful feature that gives you an overview of each fund.
Over five years the fund has returned 4.9% now remember that the market fell 28% from 2001-2002
over three years the fund returned 23.6% and over a year 27%

Charges

Now this is where Fidelity score over the competition.
There is no initial charge on ISA and ISA/PEP transfers or non ISA holdings.
The annual management charge is 0.10% with a total expense ratio of 0.30% compare that to the Virgin UK Index with has a charge of 1%
There are no exit fees to pay.

How to Invest

You can apply online:- fidelity.co.uk/track
or by phone :- 0800 22 25 20 9am-8pm 7 days

Online the site navigates very easily , you check this fund against others comparing costs and performance and you can download application forms.

Note you will need your N.I. number for ISA investment, and you will have to send in documents as proof of I.D.

You can invest by lump sum £1000 initial and £250 top up (max £7000 ISA per tax year)
They also have a monthly investment plan £20 (£487.78 ISA)

At this point I should mention this is not advice to buy this particular fund and any stockmarket investment should be viewed as longer term 5-10 years.

I have held funds with Fidelity and other Managers through Fundsnetwork for some years and have found them easy to deal with , infact all my dealings have been online.
They have a clear and transparent set of charges.
You get a printed statement posted once a year, and once registered you can track your investment online, buy,sell or transfer your holding at any time (subject to switching fee from 1%)
Don't forget you have 3 days to get your 2005/06 ISA don't get sucked into funds with blue sky performance with sky high charges.
 

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