Buying direct is as it says – going direct to the company or provider whose product you want to buy rather than going through an adviser or middleman.

Buying investments is no different to buying any financial product. If you think about arranging your mortgage you can either shop around and find the best deals for yourself or you can go to a mortgage adviser who can check all the products for you, find the best prices, deal with the paperwork and do the general legwork.

There are a number of ways you can buy products direct - through a call centre, your bank or building society, a non-financial company like a fund supermarket or via the internet

When you buy direct you’re in control, you choose what you buy and when. However you need to make sure that you understand what you’re buying, so do your homework before signing up.

Be aware, though, that if you buy direct then you don’t get any advice, but the sales people may be able to put you in touch with someone who can offer advice.

Pros

• No middleman.
• You’ll have a relationship direct with the company providing the investment.
• You won’t have to pay for advice.

Cons

• You’ll have to decide whether a product is right for you as you’ll be buying without advice.
• You could be missing out on special offers from other providers.

If you know what you’re looking for and you’re sure a product is right for you, buying direct could be an option. But do your research and be aware that you are buying without receiving any advice.

You can buy direct in a number of ways, including:

• Over the phone
• Company sales advisers
• Bank or building societies
• Non-financial companies (like supermarkets)
• Online.

You need to be aware, though, that when you go direct the sales people may only be able to provide information on their own products and may not be able to give advice on other companies and their range of products. The sales people may be able to put you in touch with somebody who can offer financial advice.

Do your homework – make sure you know what you’re buying before you sign.

Think ahead – make sure you’re not won over by short term offers that are not so good in the long term.

Get the answers – price isn’t the only factor when you buy. Make sure the company is reputable, the product meets your needs and it actually does what you bought it for.