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Fidelity UK Index Fund ISA

Invest in a Fidelity UK Index Fund ISA in 2022

Investment ISAs put your capital at risk & you may get back less than you originally invested

Stocks & Shares ISA

from Fidelity

Allows ISA Transfers
Regular Savings
  • Fund Choice: Choose from over 4,000 investment options, including one of the widest fund ranges in the UK. With online guidance tools and expert fund ideas to help you choose. Capital at risk
  • Invest From: £25 pm

Stocks & Shares ISA

from Nutmeg

Allows ISA Transfers
  • Fund Choice: Nutmeg offer 4 diversified portfolios with ETFs, using technology to keep charges low.
  • Invest From: Min. £500 single

Share Dealing ISA

from Interactive Investor

Allows ISA Transfers
  • Trade From (frequent trader rate): £7.99 (Investor Plan: Flat fee of £9.99pm with one free trade)

Share Dealing ISA

from AJ Bell

Allows ISA Transfers
  • Trade From (frequent trader rate): £4.95
  • Trade From (standard trader rate): £9.95

Stocks & Shares ISA

from Best Invest

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Over 2,500 funds, UK shares, investment trusts and ETFs or choose Ready Made & Managed Portfolios
  • Invest From: No minimum

Share Dealing ISA

from Hargreaves Lansdown

Allows ISA Transfers
  • Trade From (frequent trader rate): £5.95 per trade - 20 trades + pm
  • Trade From (standard trader rate): £11.95 per trade

Stocks & Shares ISA

from Wealthify

Allows ISA Transfers
Regular Savings
  • Fund Choice: Choose your risk profile and have an investment Plan built and managed for you.
  • Invest From: £1

Stocks & Shares ISA

from InvestEngine

Allows ISA Transfers
Regular Savings
  • Fund Choice: Offering commission-free DIY investing or low-cost, professionally managed income or growth portfolios built for you
  • Invest From: £100

Stocks & Shares ISA

from Willis Owen

Allows ISA Transfers
Regular Savings
  • Fund Choice: Choose from a wide range of funds, shares, investment trusts and ETFs. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
  • Invest From: £25

Stocks & Shares ISA

from Moneyfarm

Allows ISA Transfers
Regular Savings
  • Fund Choice: Choose your risk profile and have it matched to an investment portfolio expertly built and managed.
  • Invest From: £1,500
See Deal Up to £400 for all new users that create an account until the end of April

Investment ISA

from Barclays Smart Investor

Allows ISA Transfers
Regular Savings
  • Fund Choice: Invest in over 2,000 funds, plus Exchange Traded Funds, Investment Trusts, Shares and more. 5 Ready-made Investment funds if you’re not sure where to invest. Capital at risk.
  • Invest From: Any amount

Share Dealing ISA

from IG

Allows ISA Transfers
  • Trade From (frequent trader rate): £3.00
  • Trade From (standard trader rate): £8.00

What is a Fidelity UK Index Fund ISA?

A Fidelity UK Index Fund ISA is a Stocks and Shares ISA that invests in the Fidelity UK Index Fund.

What is a Stocks and Shares ISA?

A Stocks and Shares ISA is a type of tax-free investment account that allows you to invest in the stock market via funds and shares.

ISAs are completely sheltered from income tax and capital gains tax.

This means your profits from investment growth and dividends are completely tax-free.

What is the Fidelity UK Index Fund?

The Fidelity UK Index Fund is an index fund (specifically an OEIC) managed by Fidelity.

You can invest in the fund via an investment platform, such as Hargreaves Lansdown or Fidelity’s investment platform, by purchasing units of the holding.

You can hold the fund in a Stocks and Shares ISA or a General Investment Account, and you can mix and match between other investment funds to diversify your portfolio.

What does the Fidelity UK Index Fund invest in?

As the fund is an index fund, also known as a tracker fund, it simply aims to track the performance of a specific index – specifically, the FTSE All-Share Mid-day (Gross Total Return) Index.

This means that the underlying holdings of the fund are not hand-picked by investment professionals. The fund simply invests proportionately in the holdings of the index, replicating the performance of that market as a whole.

The FTSE All-Share is an index of the London Stock Exchange and is effectively an aggregation of the 600+ companies listed on the main stock market, from the FTSE 100 through to the FTSE SmallCap.

Charges:

Because the fund doesn’t benefit from expert investment decisions, it means that the ongoing fund charges (OCF/TER) are considerably lower compared to Fidelity’s actively managed funds.

Fidelity’s UK Index fund’s ongoing charge is 0.06% per annum, whereas you would expect to pay in the region of 0.5% per annum for an actively managed fund.

An actively managed fund will aim to outperform its benchmark and make up for the charges in investment returns, but they are not always able to do so.

Risk level:

The fund is graded as higher risk, with a score of 6 out of 7 on the risk scale.

Although the fund’s performance is diversified across over 600 companies, some of them being the biggest companies in the UK, it also invests in many small UK companies that have more volatile share prices.

Also, as the fund isn’t actively managed, it can’t take any preventative investment decisions to avoid poorly performing companies.

How do I open a Fidelity UK Index Fund ISA?

1. Open a self-select Stocks and Shares ISA (also known as a DIY or self-invested ISA)

You can do this via an investment platform provider online, and the process takes from 10 to 15 minutes.

2. Contribute up to £20,000 into your ISA

You can add money with a debit card lump sum payment, or with a monthly direct debit.

3. Buy units in the Fidelity UK Index Fund

Find the Fidelity fund through your online platform and invest.

Can I transfer an existing ISA into a Fidelity UK Index Fund ISA?

You can transfer existing Stocks and Shares ISAs or Cash ISAs that you’ve opened in previous years into a new ISA and invest in the Fidelity UK Index Fund.

ISA transfers don’t count towards your allowance, so you can transfer your old ISAs but also invest £20,000 of new money on top if you wish.

How to transfer a previous year’s ISA to your new one:

1. Contact your new ISA provider to obtain an ISA transfer form

2. Complete the form and return it to your ISA provider

3. Your new provider will complete the transfer for you

4. Once done, you can invest your ISA money into the Fidelity UK Index Fund via the platform

Sam Hodgson
Edited by Sam Hodgson - ISA.co.uk

Frequently Asked Questions

No. You can switch providers with an ISA transfer if you wish. You can also contribute to other ISA providers in separate tax years.

ISA accounts are authorised and regulated by the Financial Conduct Authority (FCA). This means that all ISA providers are covered by the Financial Services Compensation Scheme (FSCS) for up to £85,000 if they go out of business.

Please note that this may not apply to the underlying holdings within a Stocks and Shares ISA, and will not cover standard investment losses. 

No, ISA stands for Individual Savings Account and must be solely owned for tax purposes.

Your investments can go up as well as down, and so you should always be prepared for the event that you could lose money.

You can withdraw money at any time from your Stocks and Shares ISA.

Yes. Most providers allow you to have dividends automatically paid out to your bank account upon receipt. You can also have them reinvested automatically, too.

You will be charged an annual management charge from your investment ISA provider, and you may also need to pay ad hoc administration and dealing charges.

The funds you invest in may also charge an annual fee. 

You can do this online, via a mobile app, on the telephone or with postal instruction. You will need to sell any relevant holdings first and then withdraw the proceeds.

Most ISA withdrawals will complete in approximately five working days, but they could take longer depending on the assets you need to sell.

The annual ISA allowance is set by HMRC each year, and the current limit is £20,000 per person for the 2022/23 tax year.

There is no limit to how much you can withdraw from your Stocks and Shares ISA, but the funds you withdraw will lose their ISA status. You may be charged an account closure fee if you withdraw everything.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.