What charges will I pay when I invest in funds?
When you invest in funds, they're managed on your behalf. This management comes with some possible charges, which we've detailed below.
Ongoing charges figure
The main charge levied by a fund manager is the ongoing charges figure (OCF). This includes the Annual Management Charge (AMC) and other operating costs.
The OCF is calculated as a percentage of the amount you hold in the fund. It’s taken directly from the assets held within the fund. For example, if your holding in a fund is worth £10,000 and the OCF is 1%, the charges will effectively reduce its value by £100.
Performance fee and initial charge
You may pay a performance fee on your fund. There could also be an initial charge (although we negotiate discounts with the fund managers on some initial charges). You can find details of the OCF and other charges within the fund’s Key Information Document (KID or KIID) and factsheet.
Account charge
When you hold a fund in your AJ Bell account, you’ll pay a monthly account charge. This is taken from the cash in your account and is based on the total market value of your fund holdings. They’re calculated on the last working day of each month and usually collected within 20 business days of the month's end.
Our fund account charges are:
| Value | Annual charge | |
|---|---|---|
| Funds (including unit trusts, OEICs and structured products) | First £0 - £250,000 | 0.25% |
| Next £250,000 - £500,000 | 0.10% | |
| Value over £500,000 | No charge |
The dealing charge when you buy and sell funds is £1.50. There’s no dealing charge to buy our AJ Bell funds. When you buy a fund, you can see an estimate of the total charges by clicking ‘View costs and charges’ on the ‘Buy and sell’ screen.
Read more about the different types of investment fees.