A fund platform or investment platform is an online service that allows

investment Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

s to be bought online. Fund platforms may simplify the process of investing or provide investments at a discounted rate.

Use

In many cases, investments purchased on a fund platform can then be held on the platform in a range of tax efficient wrappers. They can be used to purchase shares, bonds and a range of funds from different fund managers. The investments that can be purchased via each platform vary depending on the service provider. Fund platforms enable investors to buy and hold their investments online, all in one place, with a degree of flexibility to alter their investments. Many provide the opportunity to buy assets ''in-specie'', which helps the investor switch investments without unnecessary charges. These services also cut down on paperwork as transactions are centralized.

Types

Fund platforms fall into two distinct groups: ''fund wraps'' and ''fund supermarkets''. Wrap services are online services where investors access their account details online. Fund supermarkets are generally more transactional and are used for buying funds cheaply online, either by a financial adviser (on behalf of a client) or by the investor themselves.

United Kingdom

In the United Kingdom, individual investors can usually hold a range of investments within several different types of 'tax wrapper', such as: * Individual

savings account A savings account is a bank account at a retail banking, retail bank. Common features include a limited number of withdrawals, a lack of cheque and linked debit card facilities, limited transfer options and the inability to be overdrawn. Traditi ...

s ( ISAs) * EPPs * QSPs or MIPS * Personal equity plans (PEPs) * offshore or onshore investment bonds (also called

insurance bond An insurance bond (or investment bond) is a single premium life assurance policy for the purposes of investment. Due to tax laws they are a common form of investment in the UK and some offshore centres to avoid tax. Traditionally insurance bon ...

s) * personal pension plan, either insured personal pensions or

Self-invested personal pension A self-invested personal pension (SIPP) is the name given to the type of UK government-registered personal pension scheme which allows individuals to make their own investment decisions from a wide range of investments by HM Revenue and Customs ( ...

(SIPPs). The investments you can buy via these services and often hold on the platform itself can include: * direct mutual funds (i.e.

unit trust A unit trust is a form of collective investment constituted under a trust deed. A unit trust pools investors' money into a single fund, which is managed by a fund manager. Unit trusts offer access to a wide range of investments, and depending on ...

or OEIC) or

investment trust An investment trust is a form of investment fund found mostly in the United Kingdom and Japan. Investment trusts are constituted as Public limited company, public limited companies and are therefore closed ended since the fund managers cannot red ...

or SICAV holdings * individual equities, corporate bonds * cash * ETFs * VCTs * hedge funds * gilts * structured products * property partnerships.

References

{{reflist Investment management

Use

Types

United Kingdom

See also

References