Fund Charges - AMC and TER/OCF

tigerspill

Hope someone can help with a query that I guess I should already know.

What is the difference between AMC and TER/OCF. I have looked at the definitions, but still don't understand.

When I invest in a fund, do I pay one or other or both (i.e. add both together to get the true cost)?

Sorry if this is a dumb question.

jem16

tigerspill wrote: »

What is the difference between AMC and TER/OCF. I have looked at the definitions, but still don't understand.

The AMC doesn't include all the expenses/charges for a fund. The TER/OCF includes most of the extra charges but not completely all but it's the closest you'll get to the whole charge.

When I invest in a fund, do I pay one or other or both (i.e. add both together to get the true cost)?

You pay only the one. The TER/OCF includes the AMC so that's the one you should really take notice of.

dunstonh

What is the difference between AMC and TER/OCF. I have looked at the definitions, but still don't understand.

AMC is old hat. You should not use AMC any more. TER was a more inclusive measure but that too has been replaced with OCF which is the latest and most inclusive measure to date.

Do note, that the pension and life funds only have an AMC but they equate to the OCF on unit trust/OEICS.

tigerspill

Thank. The answers here are exactly what I was hoping to get.