fund charges, are they too much ?

desmo666

I have a savings fund with old mutual wealth, and they have a flat annual fee of £72, now the funds have been performing ok, but whilst doing a review i tried to cross reference other fund charges and to say its not clear is an understatement.
Am I paying too much, what are your annual saving fund charges ?
All help and advice/comments welcomed.

ColdIron

A flat fee can be very cheap if you have a large amount invested while for lower holdings a percentage based structure is usually a better option. Transaction fees may also have a bearing
What are the sums involved?

desmo666

40k, with no funds added or transferred ( as this can sometimes be charged ). Has been around 9% interest for the last few years, so I am reasonably happy with that

dunstonh

I have a savings fund with old mutual wealth, and they have a flat annual fee of £72, now the funds have been performing ok, but whilst doing a review i tried to cross reference other fund charges and to say its not clear is an understatement.

If you are paying £72 a year then that means you are on charge basis 1 or charge basis 2. You will shortly be moved off this charge basis onto CB3. That is unless it is within a pension.

In some cases CB1/2 can be cheaper than CB3. Or vice versa.

Am I paying too much, what are your annual saving fund charges ?

Impossible to say. I did a pension top up this week to someone on CB2 and their annual charge is £72 plus 0.23% p.a. fund charges. Whereas the same platform has all the expensive charged funds on it as well. However, I have also moved some pensions to CB3 as the funds they utilised were cheaper on the new charging basis.

JohnRo

they have a flat annual fee of £72

A flat annual fee of £72 on £40K equates to charge of 0.18% p.a.

That's cheaper than most platforms and cheaper than all that charge a fixed percentage of the investment balance AFAIA.

If you're just sitting on the investment and not doing anything to it, somewhere like Iweb might be a longer term option, it would cost £200 in a one off charge, so you'd pay upfront to then start saving late in year 3 and onwards, the longer you then hold it there the more you'd save, relatively. That's assuming they have your chosen investments available. They also charge £5 per transaction though so that would have to be factored in addition to the one off charge.