Moves from major online fund supermarkets this month suggest the Isa price war is heating up...
Moves from major online fund supermarkets this month suggest the Isa price war is heating up. Furthermore, the sort of deals being made available online to customers as a result of this could threaten to jeopardise IFAs' ability to compete.
Earlier this week nine of Fidelity's FundsNetwork's providers cut the initial charge on their Isa funds to 0.25% or less, for customers buying before 20 February.
Not to be outdone, Ample.com has responded with a 1% cashback for all of its Isa investors from 2 February right through to the end of the tax year. Ample.com says this maintains its position as the cheapest fund supermarket in the UK.
Ample.com declared: "The fund supermarket price war may have started, but so far we're winning both the battle and the war!"
Ample.com's offer means there is effectively no initial charge on the majority of its Isa funds. For anyone choosing one of the 30 or so funds with no initial charge already - it's money for nothing as Ample.com keenly pointed out.
Ample.com claims most of its funds have an initial charge of 1% or less with the most expensive at an initial charge of 1.5%. The fund supermarket says FundsNetwork on average is more expensive, typically with initial charges of between 1.25 - 2%.
Ample.com conceded a number of FundsNetwork's changes, announced this week, undercuts it in some places. Ample reminded however, its 1% cashback is valid until the end of the tax year and applies to all funds, whereas most of FundsNetwork's special deals close before the end of February and only apply to various subsets of its fund supermarket.
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