Fund Yearly Charge (Basic Question)

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
2 replies 558 views
nemesis1985nemesis1985 Forumite
17 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
suppose you invest £10,000 in a fund with an annual charge of 1.5% for 5 years. do they take 1.5% of £10,000 each year or do they charge you a percentage of whatever your investment is now worth?



  • dunstonhdunstonh Forumite
    106.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Its not normally taken annually. It is declared as say 1.5% p.a. but is usually 1/12th of 0.5% of the fund value at that point in the month. (There are exceptions and variations to this as always)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • great! thanks for your reply
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