Summary
Fund Supermarket
A fund supermarket is typically a web site that can provide an alternative, more
convenient way of investing in collective investment funds. The 'supermarket' term
reflects the way in which they operate; a variety of funds can be purchased from
a number of different management groups in one online place. Similar to real life
supermarkets, the online counterparts have different goods on offer and services,
size and cost vary greatly.
Fund supermarkets, pioneered in America, were introduced to the UK investor at the
end of 1999. From the launch of Prudential's Egg and Fidelity's FundsNetwork, some
of the first supermarkets to appear, the choice has become almost overwhelming.
A report by the research firm Cerulli Associates, predicted that by 2004 at least
25% of all new Unit Trust and OEIC sales will be conducted via a fund supermarket.
It is clear that much is expected of them, but just how do fund supermarkets compare
to the conventional ways of investing and how can they benefit you?
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