A fund platform or investment platform is an online service that allows investments to be bought online. Fund platforms may simplify the process of investing or provide investments at a discounted rate.
In many cases, investments purchased on a fun 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.[1][2]
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.
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.
In the United Kingdom, individual investors can usually hold a range of investments within several different types of 'tax wrapper', such as:
The investments you can buy via these services and often hold on the platform itself can include: