Clean Share vs Legacy ISAs

upperlayham

Hello All,

I am currently reviewing my Stocks & Shares ISA at HSBC.

I have been informed that my legacy fund has charges as follows:
AMC - 1.25%
Other Expenses - 0.64%

I was then informed that if I transfer these to clean share class, charges will be as follows:
AMC - 0.55%
Other Expenses - 0.74%
Platform Fee - 0.25%

My question is, which one will be better for me? Is the calculation as simple as adding up all of the percentages, or is the platform fee, for example, taken in a different way?

It would also be nice if someone knew of a simple calculation that I could use when reviewing the charges on any fund I wish to purchase to calculate total costs?

Many thanks in advance.

Lokolo

It is simply adding them up and comparing. Usually.

The legacy one may have a rebate, so consider this as well.

upperlayham

Apologies for my ignorance, but is a rebate an advantage of a legacy fund or a disadvantage?

Lokolo

Advantage

So with a lot of fund platforms the legacy platforms have high charges but then rebate a lot.

e.g. a fund has an AMC of 1.5% but has a rebate of 0.5%, so infact you pay 1% (1.5% minus the 0.5% rebate) and then other expenses on top.