Davy has launched an online investment fund “supermarket” aimed at consumers looking to invest as little as €500 in a pension.

Davy Select customers will have access via the site DavySelect.ieto up to 10,000 investments, including actively managed funds from more than 35 leading international providers, according to Ciarán O'Donoghue, the managing director of Davy Select.

The platform – which cost Davy €10 million to develop – is modelled on UK online fund selection sites which have captured 20 per cent of the market in the past five years. The new service is available online or via a mobile app.

There is no initial commission or dealing commissions on funds and no exit penalties. There is an annual administration fee of between 0.75 per cent and 1 per cent depending on the level of advice the customer wants.

“Davy Select aims to grow the market by providing a cost- effective, user-friendly online platform, with plenty of choice and complete transparency,” said Tony Garry, the chief executive of Davy. He called for the abolition of exit charges by all pension providers “so that consumers can invest on the basis of performance and service and not be restricted by anti-consumer lock-in agreements”.

Davy did not disclose any targets yesterday, but said they expected a number of competitors to follow their lead in the Irish market.