What charges will I pay when I invest in funds?
Funds are managed on your behalf, and this management comes with a charge. The main charge levied by the fund manager is the ongoing charges figure (OCF). This includes the Annual Management Charge (AMC) and other operating costs.
The OCF is calculated as a percentage of the amount you hold in the fund, and is taken directly from the assets held within the fund. For example, if your holding in a fund is worth £10,000 and the OCF is 1%, the charges will effectively reduce the value of your holding in the fund by £100.
As well as that, you may pay a performance fee and an initial charge for a fund (although we negotiate discounts with the fund managers on some initial charges). You’ll find details of the OCF and other charges within the fund’s Key Information Document (KID or KIID) and also on each fund’s individual factsheet.
And when you hold a fund in your AJ Bell Youinvest account, you’ll pay our custody charge. This charge is taken monthly from the cash in your account and based on the total market value of your fund holdings. They’re calculated on the last working day of each month, and usually collected within 20 business days of the month end. Our fund custody charges are:
To buy and sell funds, the dealing charge is £1.50. There’s no dealing charge to buy our AJ Bell funds.
When you buy a fund, you’ll be able to see an estimate of the total charges you’ll pay on it by clicking ‘View costs and charges’ on the Buy and sell screen.