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Investment Fund Charges
Al_Ross
Posts: 977 Forumite
A member of my wifes family is looking to invest £90,000.
He has been in touch with a Financial Adisor and he has stated his company charge an initial 3% to set up the fund and then an annual 0.75% charge.
Are these charges about the going rate.Seems a lot to me.
He has been in touch with a Financial Adisor and he has stated his company charge an initial 3% to set up the fund and then an annual 0.75% charge.
Are these charges about the going rate.Seems a lot to me.
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Comments
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That seems a bit steep. Especially with the RDR changes.
What kind of advisor? What would they actually get for what they are paying? It is their money so they are entitled to ask all the questions they like.0 -
He has been in touch with a Financial Adisor and he has stated his company charge an initial 3% to set up the fund and then an annual 0.75% charge.
Is that an FA or an IFA?
3% is the typical maximum you see nowadays. £90k isnt a lot for some IFAs but will be ok for others. You wouldnt expect the best charges but something aound the £1000-£2000 mark would be typical. 0.75% is probably because it is under £100k and again, not large enough to get more competitive rates. That said they may find others willing to come in a bit lower.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.0 -
The other option would be to do some research and do it himself?
He could use the stocks and shares ISA option for part of the money in this tax year and the same next? http://www.which.co.uk/money/savings-and-investments/guides/stocks-and-shares-isas-explained/
http://www.cavendishonline.co.uk/investments/
http://www.hl.co.uk0
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