Fund of funds hide fees

System

I just mean all the first page of funds on their list were 0.7+%, and the way fees are deducted from price I think might make it harder to know what they've taken vs what the underlying fund took

bowlhead99

MatthewAinsworth wrote: »

the way fees are deducted from price I think might make it harder to know what they've taken vs what the underlying fund took

Well if they say they're explicitly taking 0.35% a year for the platform fee regardless of what you buy on the platform, then that is what they are taking, and you'll see it on your monthly or quarterly or annual statement.

Then the fund to which they are providing access on the platform is between 0.1% to (say) 0.7%, so the total fee on each pound of your money could be somewhere between 0.45% and 1.05%. The money in the cheap tracker is more likely therefore to be ~0.45% all in while money in a property fund or equity income fund is closer to ~1.00% all in.

Overall you would have a blend. The 0.35% would be seen through your statement while the piece charged by the underlying fund(s) manager is taken directly out of the fund on a daily basis so you don't see it, but you know that it is costing you 0.1% or 0.7% a year or whatever, based on the fact sheet. The important thing really is what the return after the charges looks like.

You can of course shop around and find somewhere cheaper than Axa's 0.35%. For example Charles Stanley Direct is 0.25% and Youinvest which I use is 0.2% (although the latter has trading fees on each and every fund purchase or sale you make, and all the little £1.50s (or more) would add up if you were dripping money in each month). Other structures are available from other providers.

System

I think if my fof does deduct the underlying fees from what it charges then its hard to beat, esp for regular contributions of small amounts

bowlhead99

Why not tell us what the fund is, and how you're holding it, i.e. what platform you're holding it on, if you're not holding it direct with the fund manager?

You mentioned you haven't been charged a management fee yet - but most funds charge 1/365th of the annual fee every day and reflect it in the price of the fund. Otherwise, you can buy in now and sell before the fee comes around and they've done all the management work for free, which is unworkable.

System

Scottish windows growth fund 6, held direct, I think they said fees collected on the 30th September or something

dunstonh

MatthewAinsworth wrote: »

Scottish windows growth fund 6, held direct, I think they said fees collected on the 30th September or something

That is a fettered fund of funds. Not an unfettered fund of funds. It only uses SW or ex SWIP (now branded Aberdeen) funds.

System

Whats a fetta fund? (j/k) but seriously don't know difference

System

Hmmm have read that fettered does better due to lower costs and insight into portfolios

I wonder if the underlying funds are unfettered...

bigadaj

MatthewAinsworth wrote: »

Hmmm have read that fettered does better due to lower costs and insight into portfolios

I wonder if the underlying funds are unfettered...

The underlying funds are from a limited list as explained by dunstonh above.

Are you holding this in a pension?

System

Nah s&s isa, pension is DB, I'm simply looking for an alternative to mortgage overpayments that performs better and gives me liquidity, and maybe can use for early retirement or wedding