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Most platforms charge an ongoing admin fee, which might be a percentage based on your total investment, although some will charge a flat fee on a monthly or annual basis. The OCF takes into account the annual management charge (AMC) and all the expenses of running the fund. Our general email address is
Money Compare is a trading name of Which? Some types of fund (for example, targeted absolute return funds) charge these on top of the regular annual charge. Which? Don't ignore percentage-fee platforms completely, however, as some stop charging for amounts over certain thresholds. The OCF is like the TER but does not include things like performance fees, as these will vary depending on how well the fund performs.
And higher returns are normally available only with higher risk investments, where the risk of losing your money is also greater. Give us a call for free and impartial money advice.
They will be lower for tracker funds since they will usually change their investments less frequently. Some platforms will include a certain number of 'free' trades per month.
What makes up the costs shown in the table? A small portfolio shouldn't mean you receive inferior customer service: many top-rated platforms now allow you to invest from just £100 a month.
There is also a spread between the buying and selling prices which is, in effect, another charge. You invest in investment trusts by buying their shares, which are quoted on the stock market, so you need to allow for the dealing charges you’ll have to pay to the stockbroker both when you buy and when you sell. Check to see if there’s a performance fee, what would trigger it and how much it would cost you. For everything else please contact us via Webchat or Telephone. A ‘fund platform’ is an online service that administers your investments, typically lets you review your whole portfolio at any time and might offer a range of interactive tools to help you explore your investment options (a fund supermarket is an example of a fund platform). Sorry, web chat is only available on But you should remember that past performance is not a reliable indicator of future performance. Fixed. If you're not already a member, join Which? The ongoing charges figure has become the standard way to compare the cost of different funds.
This table provides an indication of the typical annual costs for different investment products, based on ongoing charge figures (OCF). Taking control of debt, free debt advice, improving your credit score and low-cost borrowing, Renting, buying a home and choosing the right mortgage, Running a bank account, planning your finances, cutting costs, saving money and getting started with investing, Understanding your employment rights, dealing with redundancy, benefit entitlements and Universal Credit, Planning your retirement, automatic enrolment, types of pension and retirement income, Having a baby, divorce and separation, what to do when someone’s died, choosing and paying for care services, Buying, running and selling a car, buying holiday money and sending money abroad, Protecting your home and family with the right insurance policies, Coronavirus Money Guidance But fees erode your investment earnings. We will normally respond to your enquiry within 48 hours of receipt. Assumes consistent loss or growth each year. Fixed-fee platforms are likely to work out cheaper, particularly above £100,000, where differences in fees can add up to the thousands. Here’s how £1,000 in a platform costing 0.1% and a platform costing 1% would perform in three different investment performance scenarios, ranging from poor (5% loss), to neutral (0% growth) to good (5% growth): Note: example for illustration only.
The ongoing charges figure has become the standard way to compare the cost of different funds.
Seethe latest investment deals on Which? and get full access to these results and all our reviews. They might be up to 1.25% (or more) on an actively managed funds, compared with under 0.5% for a tracker fund.
Money Compare. Members can log in to see our comparison. Property fund investors could face a six-month wait to release cash under new rules. While some fees are made clear up front, be alert to the fact that others might be hidden.
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To see how much look at the returns John and Jo get in the table below.
© Copyright 2020 The Money Advice Service 120 Holborn, London EC1N 2TD. Limited on behalf of Which? Managing investments involves time and money and you must expect to pay reasonable charges. Here’s how £1,000 in a platform costing 0.1% and a platform costing 1% would perform in three different investment performance scenarios, ranging from poor (5% loss), to neutral (0% growth) to good (5% growth): Financial Services Limited is a wholly-owned subsidiary of the Consumers’ Association (a registered charity) and is authorised and regulated by the Financial Conduct Authority (FRN527029).
Endowment policies, investment bonds and whole of life policies are subject to most of these charges too. email@example.com.
For example, you could pay a lump sum direct to the adviser at the time you receive advice. Since the start of 2013, if you invest with the help of a financial adviser, you pay a separate charge for this advice. Fees and charges on life insurance linked investment products, Check ongoing charges for different funds, How much Income Tax and National Insurance you should pay, Talking money with young people in Scotland, Why we keep money secrets in relationships, according to Relate, How to choose between saving and borrowing. Which? They are equivalent to the costs you would incur if you decided to buy shares for yourself. An annual fee of 0.2% produces a difference of $1,063.60. Over time, this can make a huge difference.
Saturday, Sunday and Bank Holidays, closed. Money Compare's savings comparison tables help you find the best savings account and show the best savings rates, based on both price and the quality of customer service you can expect. It is a fairer and more accurate indicator of the charges and their effect on a fund’s performance than the quoted annual management charge (AMC). Which? It’s quoted as a single percentage figure. This is similar to the total expense ratio (TER) which some funds still publish where permitted. Look for platforms with a low-percentage based annual fee and no fixed fees. They might be up to 1.25% (or more) on an actively managed funds, compared with under 0.5% for a tracker fund.