Through TD Waterhouse's low-cost structure, investors will have the opportunity to save nearly £400 on an investment of £10,000, says the firm.

TD Waterhouse now also offers six of its own funds specifically designed for the first-time fund investor. Managed by TD Asset Management, these funds are TD Waterhouse's first UK market offering.

Any funds purchased through the TD Waterhouse Fund Supermarket can be consolidated into one account with any other shares and cash holdings. Customers can hold funds in a regular trading account or within an ISA wrapper (initially available by telephone only).

Investors can choose from nearly 400 unit trusts and Open Ended Investment Companies (OEICs) provided by companies including Fidelity, Schroders, M&G, Invesco Perpetual, Standard Life and Jupiter. TD Waterhouse's fund supermarket also offers access to institutional fund research and analysis from TD Asset Management's global fund research group and from Morningstar UK.

Bharat Masrani, vice-chairman, TD Waterhouse, says the UK marketplace is set to grow from £259 billion in May 2001 to £555 billion by 2005 for authorised funds. "Fund supermarkets will account for at least 25% of annual net new inflows as investors increasingly take control of their financial planning," he says.

Alec Morley, chief operating officer, TD Asset Management, acknowledges the hype surrounding fund management performance and says retail investors have become cynical about many of the claims.

"The fund supermarket extends the range of financial solutions we can offer, giving customers the chance to further diversify their investment portfolio," he says.