Framlington is raising the initial charge to 5.25 per cent in a bid to standardise charges. The flagship monthly income fund managed by George Luckraft had an initial charge of 3 per cent while others varied between 4 and 5 per cent.
The absolute growth,NetNet, UK smaller companies and new leaders funds all had initial charges of 5.25 per cent already.
Framlington says, because of discounts, the charges paid for funds sold through supermarkets will not change. The increases come into effect in February.
Whitechurch Securities investment director Gavin Haynes says: “Who does pay the initial charge these days? This will just make IFAs more competitive.”
Hargreaves Lansdown head of research Mark Dampier says: “I would be surprised if many IFAs had their discounts affected by this. Not many people pay the initial charge these days.”