Fund managers charge a fee to manage the fund. This is known as an ongoing charges figure (OCF) and covers the management and administration costs of running the fund. The OCF varies from fund to fund.
For example, if a fund’s OCF is 0.85% and you have £1,000 worth of units in the fund, your charges will be £8.50 per year. This fee is charged pro-rata throughout the year, and deducted directly from your returns.
The OCF is listed under “fund fee” on the instrument details screen in your app or web platform. It is also found in each fund’s Key Investor Information Document (KIID).