Add mutual funds

I want this: http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000SRPN
The cost is lower than your similar ETFs. Also I’d like:

http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F000005OPT
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000LK2Q
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MC3M

It would also be a USP vs Robinhood/Revolut when they provide their ETF option

Thanks for sharing this idea.

Mutual funds are the ‘legacy’ version of ETFs, in other words ETFs are more modern, traded more frequently / liquid and generally available for lower fees. The fees vary but ETFs tend to be lower than mutual funds; average costs for ETFs ranging around 0.5% of assets vs. an average of 1–1.5% for mutual funds. So we don’t have any plans to offer mutual funds at the moment.

There’s often ETFs that’re similar to popular mutual funds though. If you can’t find them in the Stock Universe then please create a #stock-requests for it.

I’ll leave this topic open for others to vote on, on the off-chance that something changes in the future.

For anyone who’s not familiar with mutual funds, here’s our explanation from the Asset Class blog post -

Mutual funds:

Investment vehicles that pool investor money to buy equities and other assets. Like ETFs, they vary hugely in structure, strategy, management and asset choice. Again like ETFs, they’ll have management fees. Unlike ETFs, a share in the fund doesn’t trade like a stock and the fees will be higher. Relative to ETFs, they’re more likely to be actively managed by a particular team or person or have a more discretionary approach to investing.

:face_with_monocle:

The most recommended thing for the wise long term investor to invest in right now would probably be the Vanguard FTSE Global All Cap Index Fund.

It’s the better version of VWRL.

The fees are actually lower, and the structure means that you pay the actual NAV and don’t have to worry about irrational price fluctuations on the stock market for the ETF.

I feel like Freetrade could be the answer that long-term investors are seeking: we just need a modern platform that can minimise or eliminate costs, helping us capture the average market return. The Vanguard global all-cap is one of the cheapest ways of doing this, so being available within Freetrade would be a match made in heaven.

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Stating that fees will be higher for mutual funds vs ETFs isn’t exactly true. If you compare broad passive indices you might indeed be better off with mutual funds if you invest frequently (e.g. monthly small £x in index) by avoiding the trading commissions you would pay for ETFs (if fund bid/ask spreads are lower than this trading commission).

Where Freetrade is a bit different is that the trading commissions are close to £0 , so it is indeed possible that ETFs will be the cheapest option.
For me, I usually go with the ETF version because they’re more transparent, allow different order types (limit/stop/…) and give intraday valuations.

For investors who like absolutely zero effort, Vanguard’s Lifestrategy and Target Retirement mutual funds are interesting. Fees are >0.2% but they’ll rebalance for you automatically. And none are available as ETFs I think.

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I’m a big fan of the Vanguard Lifestrategy and Global all camp funds and would like to be able to purchase them in my Freetrade portfolio.

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I’d like the VG Target Retirement funds also

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Target Retirement 2065 is certainly one for the long term investor. My SIPP is in the 2040 variety and even that date is :slightly_frowning_face:

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Another plus one for the Vanguard Global All-Cap. I’d love to switch to Freetrade, but the lack of that fund is going to be a deal breaker for me :frowning:

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