S&S ISAs - paying fees

Alexland

jimjames said:

Same here, I was struggling to understand the question initially

Sadly I did understand the question as I do have to pay ongoing fees on our AJ Bell and some of our Fidelity accounts but at least they are capped now so it's fairly easy to know how much cash we need to maintain.

csgohan4

Alexland said:

tigerspill said:
I am just wondering how people manage their fees in their S&S ISAs.

Our S&S ISAs are with iWeb who have no ongoing fees

What if the fund has OCF, where will they get taken from?

kuratowski

csgohan4 said:

What if the fund has OCF, where will they get taken from?

Those costs are paid within the fund itself - already included in the price you see for the units.

csgohan4

kuratowski said:

csgohan4 said:

What if the fund has OCF, where will they get taken from?

Those costs are paid within the fund itself - already included in the price you see for the units.

a High OCF will mean less money to be investing in companies. But will have no impact on the price you sell, I assume it may increase the price per unit?

I am curious as I don't often have Funds with high OCF's

Alexland

Whatever the OCF you will not be paying it via the platform cash balance. On an income fund it just reduces the distributions and on an accumulating fund it just reduces the fund net asset value as the fees are deducted which will influence the fund unit price as it would have been higher with lower fees or lower with higher fees.

csgohan4

Alexland said:

Whatever the OCF you will not be paying it via the platform cash balance. On an income fund it just reduces the distributions and on an accumulating fund it just reduces the fund net asset value as the fees are deducted which will influence the fund unit price as it would have been higher with lower fees or lower with higher fees.

interesting, I do see some top performing funds, having OCF> 1%. 

kuratowski

If the fund manager is good they may outperform enough to beat the drag from higher fees.  But history suggests that doesn't always happen.

tichtich

Costabit said:

Depending on your platform process etc but as I like to have the maximum of £20K invested , it makes sense for me to pay the charges from outside of the ISA

Good idea. That's something I hadn't thought of.

Just a thought,  though.  I recently started an ISA and SIPP with Vanguard. They show the % return on my investment so far.  It would be nice if that figure took the charges into account. I wonder whether they would take the charges into account if I let them deduct the charges from my fund. 

In fact (changing the subject) I can't understand the % return figure that they're showing.  It doesn't seem right to me.  Can anyone tell me (or point me to an explanation of) how they calculate that figure?

eskbanker

tichtich said:

In fact (changing the subject) I can't understand the % return figure that they're showing.  It doesn't seem right to me.  Can anyone tell me (or point me to an explanation of) how they calculate that figure?

It's probably an annualised return figure, but as you say it's off topic for this thread so probably best post details in another one if you need further info....

tigerspill

Thanks folks - you have answered my question.
For my Vanguard ISA I have found how to pay the fees form my bank account and have set this up.