Fund fees

Albermarle

https://www.youinvest.co.uk/isa/charges-and-rates

Stephen7372

dunstonh said:

Thanks I was wondering how do Chelsea fees compare to alternaitves.
https://www.chelseafs.co.uk/fundstore/charges/

Expensive as they are charging 0.4% on top of the platform charge for a non-advised service.   Advisers typically charge 0.5%  whereas DIY non-advised typically has no additional charge on top.

So, effectively you are paying advised rates for a non-advised service.

BTW at the moment we're trying to decided wether to use a financial advisor or not, they do seem quite expensive really an extra 1 or so percent.

The dominant IFA ongoing charge is 0.5%   only 0.1% more than ChelseaFS non advised charge.    1% is typically seen at the lower value end

They do send a brouchure with their advice. Where could I but one that's no platform charge ?

Stephen7372

Albermarle said:

https://www.youinvest.co.uk/isa/charges-and-rates

So I could save 0.3% per year ?

Stephen7372

dunstonh said:

Thanks I was wondering how do Chelsea fees compare to alternaitves.
https://www.chelseafs.co.uk/fundstore/charges/

Expensive as they are charging 0.4% on top of the platform charge for a non-advised service.   Advisers typically charge 0.5%  whereas DIY non-advised typically has no additional charge on top.

So, effectively you are paying advised rates for a non-advised service.

BTW at the moment we're trying to decided wether to use a financial advisor or not, they do seem quite expensive really an extra 1 or so percent.

The dominant IFA ongoing charge is 0.5%   only 0.1% more than ChelseaFS non advised charge.    1% is typically seen at the lower value end

Who is the dominant IFA are they good or good at marketing like some companies are ! ?

[Deleted User]

IFA s are not responsible for the performance of your investments. So a “good” IFA is hard to identify on those terms. 

dunstonh

Stephen7372 said:

dunstonh said:

Thanks I was wondering how do Chelsea fees compare to alternaitves.
https://www.chelseafs.co.uk/fundstore/charges/

Expensive as they are charging 0.4% on top of the platform charge for a non-advised service.   Advisers typically charge 0.5%  whereas DIY non-advised typically has no additional charge on top.

So, effectively you are paying advised rates for a non-advised service.

BTW at the moment we're trying to decided wether to use a financial advisor or not, they do seem quite expensive really an extra 1 or so percent.

The dominant IFA ongoing charge is 0.5%   only 0.1% more than ChelseaFS non advised charge.    1% is typically seen at the lower value end

They do send a brouchure with their advice. Where could I but one that's no platform charge ?

They dont give advice.   So, what have you got that gives you the impression they do?
You cannot avoid the platform charge unless you do not use a platform.  However, the share class for non-platform based investments will be more expensive.  Typically by more than the platform charge.

Who is the dominant IFA are they good or good at marketing like some companies are ! ? 

Dominant as in most common.

arnoldy

Virtually every UK share a funds buy has 0.5% stamp duty. On top are dealing costs. None of this is in the OCF.
Add on adviser, platform, OCF and you have a lot of feeders.

[Deleted User]

dunstonh said:

• Transaction charges -  A synthetic figure based on a calculation with flaws.   Funds will suffer internal costs that may not be reflected in the OCF.   These are not explicit charges you are paying.   They are charges the fund is paying itself and the synthetic calculation is trying to show that cost pro-rata back to the investors.   However, there is not just one calculation method and the outcomes from the different methods can lead to different figures.   Its a fudged EU directive that caused this and most investors ignore it.

Interesting. Can anyone shed more light on this? 
For example, for investors in Vanguard 20/40/6080/100 funds, are transaction charges visible to you? Because the make up of each is constantly being rebalanced to conform to the parameters of each fund, even while the pool of underlying investments is constant; giving rise to the intriguing possibility that an investor in both VLS60 and VLS100 is being double charged for the rebalancing of a stock present in both funds.

eskbanker

ZingPowZing said:

For example, for investors in Vanguard 20/40/6080/100 funds, are transaction charges visible to you?

They're listed at https://www.vanguardinvestor.co.uk/content/documents/legal/vanguard-full-fund-costs-and-charges.pdf

[Deleted User]

Thank you eskbanker. 
Not a worry from that perspective then.