This varies so you should check with your investors need to check their documentation. The cheapest way to switch is to transfer to another fund run by the same investment house as they will usually reduce their initial charges for transfers. If you move to another investment group, you will generally have to pay the full initial charge. But if the performance of the fund you want to move to is better, it will be worthwhile the cost of switching will be outweighed by better returns over the long term. Bundling bother There are other complications involved in switching your Pep.
Peps can cause problems for investors who want to switch.
Peps together into one large sum and cannot tell which slice belongs to which tax year. Investors can transfer bundled Peps, but they have to move the whole fund. This is inflexible and can add to costs. One solution is to switch to a Pep manager which will automatically spread your money between a whole range of funds, including those run by different investment groups, known as a muli-manager fund. Multi-manager funds allow clients to deal with one company but retain a managed, diversified portfolio, says Sarah Speake, head of marketing and product management at Henderson Investors.