Charges explained
Fund management companies make charges for looking after your investment. This is how they raise money for everyday business expenses and any specialist resources needed to manage your fund.
Some funds, such as those that "track" a stockmarket index,
have relatively low charges. Others have higher charges because they rely
on particular investment expertise and extensive research.
Initial charge
If you purchase direct, most funds and fund providers have an initial set up charge to cover for account administration and fund management. Typically this is around 3.5%. NewcastleNet Funds are offering a special discount of 2.5% rebate* of this initial charge….reducing the overall cost to you.
Management charge
Each year investment managers keep back a proportion of the value of
a fund. This is usually between 1% and 1.5%. Few funds in NewcastleNet
Funds have an annual management charge of more than 1.75%. The charge
is incorporated into the price of the fund, so it does not appear on your
statement.
Switching
Once your money is under the NewcastleNet Funds umbrella, you will be given a security pin which will enable you to manage your account online. Switching from one fund to another can be done quickly and efficiently online for a nominal fee of 0.25%.
In addition, NewcastleNet Funds will also feature funds which have no initial charge or load apply, thus your up front fee will be 0%.
*Discount rates do not apply to no load funds.
