Visit Professional Section

Questions And Answers

 

Putting all your eggs in one basket are you protected?

asked by Peter Litten posted 2 Years ago at 12:57
I want to invest a fairly substantial sum, however i was looking to put it in one place, possibly one of the Fidelity Money Builder Funds, as they have particularly low charges. I was wondering what would happen if everything went belly up and i have more than £85k in one fund, is it protected? Is it possible that Fidelity could go bust? Are you Protected against Fund mangers going out of business like the protection you get against high street banks? Any info would be much appreciated.
1-2 of 2 Answers
Henry Collins answered 2 Years ago at 13:02, last modified: 2 Years ago at 14:56
I believe, Investments are completely different to savings wrt protection. The protection does not cover you if the underlying assets in your investment drop in value or go bust.

Most of the funds that you invest in are held in nominee accounts, this means even if Fidelity or the fund manager go your investments will remain intact, if i were you i would seek professional advice before investing such large sums.
Quote
Laura Gray answered 2 Years ago at 17:05, last modified: 2 Years ago at 14:56
There is protection against things such as fraud through investments being held in trust and through the 50K investment protection.

Of course we need to be clear that there is a risk of the underlying assets in the fund falling in value and there is no protection against that but that has alraedy been pointed out and I think you already understand that.
Quote
 
 

About Q&A

Get your questions answered by a unique network of professionals and fellow consumers for free. Share your knowledge and experiences by answering other consumer questions from the Total Investor community.

Q&A Categories