When it comes to making the most of a Stocks and Shares ISA allowance, investing through a discount broker or fund supermarket is best, the Money Mail has claimed.
According to the Daily Mail's money section, investors should avoid buying their Stocks and Shares ISAs direct from a fund manager, because they could take as much as 5.50 per cent of the initial investment as an upfront charge.
However, by investing via a funds service, these charges can be discounted by up to 100 per cent. In fact, according to Money Mail, an investor making the most of their full £10,200 ISA allowance (available from 6 April 2010) each year for the next five years, would save £3,204 on charges by investing through a funds service.
Other advantages of fund supermarkets and services include the fact that they offer a wide choice of funds, and once you are registered you can easily switch between funds in the future, and the minimum investment is often as little as £500 or £50 a month.
According to the Money Mail, the only drawback of a fund supermarket or service is the fact that they do not give you any advice. However, they tend to offer some guidance and tips, and some service providers will have a separate advice service.
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