Tax and charges on an investment trust?

Ruckmaul

Hi,

Newbie question!

I'm trying to calculate how much a £91,000 lump sum put in an investment trust that tracks the market would be worth over time.
And I'm a bit lost!

Compound interest is easy enough to calculate but I really don't understand how to assess how much I'd lose to taxes and charges. I know charges differ but what would be usual?

(Ignoring ISAs for simplicity)

Any help would be appreciated!

jimjames

If its a tracker then around 0.3% charges. Look at past performance here

http://www.edinburghuktracker.co.uk/aam.nsf/ITEdinUKTracker/performance

If you are looking for a tracker though unit trusts are generally cheaper with more choice.

Ruckmaul

Really? I had read that investment trusts were cheaper.

Edit: found answer re. taxation.

Rollinghome

Ruckmaul wrote: »

Really? I had read that investment trusts were cheaper.

Edit: found answer re. taxation.

Generally, they are. One reason among others being that they don't normally pay annual commission to advisers. JJ was referring specifically to index-tracker funds, which can also be commission free, not ITs in general.

With an IT, even if the underlying assets track an index then the actual price might not due to the discount or premium. ITs lose most of their advantages if running as passive funds including the freedom for gearing that they could have.