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Self-Select Funds ISA Common Enquiries
General Question
Trading Funds
Charges & Commission
Investment Limits
Transferring to us
Interest
Income & Tax Reclaims
Accumulation Units
Equalisation
General Questions
How many funds do you deal in?
You can currently invest in over 1700 funds from over 70 managers through our service.
What is a Fund?
A fund is a collective investment scheme where money is pooled, which is invested in a portfolio of securities with a common investment purpose. OEICs and Unit Trusts are examples of funds.
What is a Unit Trust?
A unit trust is a portfolio of holdings in various companies. This is divided into units and managed by professionals.
What is an OEIC?
An Open-Ended Investment Company (OEIC) is a type of collective investment scheme, similar to a unit trust except that an OEIC is incorporated as a separate legal entity and issues shares rather than units.
What Funds can I buy into my Funds ISA?
Please sign into our secure site and access the 'Funds Centre' section of our 'Research Centre'.
Are all the Funds you deal in eligible to be purchased into my ISA?
The vast majority are. If a Fund is ISA ineligible, our systems would not allow you to purchase it into your ISA.
Can I buy Exchange Traded Funds (ETC's) or Commodities (ETC's) into the Funds ISA?
A No, however we do offer a self select stocks and shares ISA in which you can purchase ETF's and ETC's. More information about these types of investment can be found on the 'Investment Options' page of www.halifax.co.uk/sharedealing.
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What are the settlement timescales for trading Funds?
Usually a 4 working day settlement period (T+4).
What is the minimum I can invest in one Fund?
This can vary but some Funds can be purchased for as little as £1. Our Funds Centre lists the minimum investment amount for each fund we deal in.
Do you offer a switching service?
No - But you can easily sell and buy stock yourself either online or via our call centre.
What is the 'Assured Valuation Point' (AVP) ?
Once a day, Fund Managers will calculate the price of their Funds; this is known as the 'Assured Valuation Point'. The time this happens can vary between Fund Managers.
When I place an order to buy or sell Funds, how will I know when the deal has been executed?
All Fund orders are placed in a queue to be dealt at the next AVP. We have a cut off time of (usually) 45 minutes prior to an AVP. So orders received after the cut off time will be dealt at the next available AVP. You can view the status of your order on the 'Order Management' page online.
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What is an 'Initial Charge'?
This is a charge made by the Fund Manager for entering the fund . It is based on a percentage of the amount contributed, typically ranging from 0% to 5.5%.
Do you offer a discount on initial charges?
We offer discounts on the majority of Funds in which we trade, with over 300 offered at 0% Initial charge.
What is 'Renewal' or 'Trail' commission?
A payment made by a Fund Manager to the company who arranged the purchase of the units/shares on your behalf. For example an Independent Financial Advisor or broker such as HSDL.
Do you offer a loyalty bonus or share renewal commission?
No we don't.
Is commission charged on Fund purchases?
No.
Is commission charged on Fund sales?
No.
Is stamp duty payable by the investor on Fund purchases?
No.
What charges are associated with the Funds ISA?
There are no portfolio administration fees. For details about our other charges please see the 'Charges & Interest Rates' page at www/halifax.co.uk/sharedealing.
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How much money can I subscribe to my Funds ISA?
The current limit is £7200 each tax year (if you do not subscribe to a Cash ISA or any other Stocks & Shares ISA in the same tax year). This limit may be subject to change in the future.
I want to subscribe money to both of your Funds ISA and Stocks & Shares ISA in the same tax year, can I do this?
You can only subscribe to one Stocks & Shares/Funds ISA each tax year.
How can I subscribe money to my Funds ISA?
You can make one-off payments or set up a regular monthly payment.
How can I pay money into my Funds ISA?
By debit card or Direct Debit.
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How can I transfer my existing ISA to you?
Please see the 'Transferring to Us' page at www/halifax.co.uk/sharedealing. Download and fill in the forms and send them back to us. We will then organise the transfer on your behalf.
I am transferring the Funds that I hold with another ISA Manager to you, how long will this take?
If you are transferring stock, this usually takes between 6-8 weeks. This is the industry standard. If you are transferring in cash this should usually take a couple of weeks.
Do you make a charge for transferring into your Funds ISA?
No, we do not. Your current ISA Manager may do so however.
Can I transfer any Fund to you?
The funds that we will accept can be found in the 'Funds Centre' section of our 'Research Centre' on our secure site . If the funds that you currently hold are not on this list, you can sell them and transfer the sale proceeds to us.
Will all Fund ISA Managers transfer my Funds as they are?
Not all of them. Some will insist you sell your holdings and transfer the cash proceeds. You should check with them before instructing the transfer.
Can I transfer my Cash ISA to you?
Yes you can. Please see the 'Transferring to Us' page at www/halifax.co.uk/sharedealing
I have an ISA with another ISA provider that holds equities and funds. Can I transfer this all into your Funds ISA?
You can transfer the Funds into the Funds ISA, you then have 2 options - sell the equities and transfer the cash into the Funds ISA, or open a stocks and shares ISA with us and transfer the equities into here.
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Do you pay interest on the cash held pending investment within my Funds ISA?
Yes, please see the 'Charges & Interest Rates' table at www/halifax.co.uk/sharedealing for details of our current rates.
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Can you claim the tax back on income from Funds that is paid into my ISA?
If the income is paid from fixed interest funds such as corporate bond funds, we will either receive the payment gross and pay the full amount into your ISA or we will receive it net of 20% tax, and we will reclaim the tax back from HM Revenue & Customs then pay it into your ISA. Please also note that where interest income from fixed interest funds is paid in the form of accumulation units we will also be able to reclaim the tax on your behalf and pay it into your ISA.
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What are accumulation units?
A type of fund that usually re-invests the dividends it receives in the underlying assets back into the fund.
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I've heard of the term 'Equalisation' in relation to funds, what does it mean?
Dividends paid out by the fund manager reflect the distribution of income for the whole period since any previous dividends were paid, regardless of when the units or shares were purchased. To ensure the fair treatment of all unit/shareholders, the purchase price of the fund includes a sum of money which represents the income accumulated on those units/shares up to the point of purchase.
When an investor receives their first dividend it will include an 'equalisation' payment, which is the value of the accumulated income up to the point of purchase. This in effect returns part of the purchase price and as such, is not taxable as income.
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Please remember the value of your investments and the income from them can go down as well as up. You may not get back the full amount you have invested. If you're in any doubt about the suitability of any of our products, or whether to buy or sell shares, you should consult an appropriate Financial Adviser.
