A simple tool for the totting investment cost is now: true and fair view of the calculator, the introduction of more transparent fund fees activist.
Calculator to expose criticism, leaving a significant part of the cost of the planned measures - is widely considered to be too high for investors - the true size of the investment costs.
Our idea is that if these are known as pre-, people can at least put money into products with their eyes wide open. And expects that they will 'vote with their feet', if they encounter poor performance of the high cost of the product.
Reduced returns: Calculator focus face costs, installation for many years, and can leave a big hole in the savings pot
Reduced returns: Calculator focus face costs, installation for many years, and can leave a big hole in the savings pot
Calculator focus face costs. Though often only a small percentage of these figures over the years installed on your savings pot, you can leave a big hole.
But cost is not the only criteria when it comes to choose to invest. Cheap is not always best - it is the overall value for the money too much. (Although the price is cheap, sometimes the best - see box).
CHEAP can best
Scottish Mortgage Investment Trust 300% in the past decade, 40 percent more than five years, more than three years of 57% and 39% over one year
This is an ongoing fee is just 0.5%.
Here we take a look at the true and fair view of the calculator is how it works.
We also asked some people in the industry that they think it is and what factors aside from the cost of the person, should be considered when selecting investments.
How true and fair calculator work?
The total project cost calculator for your investment products, and came back with a single number, either pounds or percentage.
It gives you what the potential returns may be estimated by subtracting costs.
You can compare up to three different products side by side, and they do not have to be the same type. For example, you can watch one unit trusts, investment trusts and exchange-traded fund (ETF) at once. In the UK about 6,227 products are included.
The calculator has two levels - "Standard" and "Advanced Customization." More advanced version is for experienced investors and professional users can input data, at all levels of the investment chain: capital costs, packaging costs, platform fees and consultancy fees.
Hargreaves Events Guide
It is modeled launched a few years ago by the U.S. Securities and Exchange Commission regulators, the Commission hopes that the U.S. investors have seen their pay on their investment in a simple web calculator.
Gina and investment management SCM private companies, who also led calls for a transparent fund charges a true and fair movement's founder Alan Miller, UK.
Them into their own money to the project, as costing nearly £ 200,000 - double their original estimate.
Calculator will serve as an independent not-for-profit business to run, and any profits will support small financial education or elderly care and support charity work.
Miller calculator further development, for example by looking products, such as adding in a future defined contribution pension scheme.
Gina and Alan Miller: own money nearly £ 200,000 to the project sank, which will serve as an independent not-for-profit business run
Gina and Alan Miller: own money nearly £ 200,000 to the project sank, which will serve as an independent not-for-profit business run
Industry say what?
"Simple calculator is a clean and simple way to invest relatively certain fees, financial advisers, said:" Philippa Gee of Philippa Gee Wealth Management. "I can not see that it is harmful, indeed should help to focus the attention of investors to the cost, which has a positive impact.
'Where is insufficient investment in considering other appropriate criteria, such as a fund's objectives, performance, volatility, distribution, experience and the size of funds (which itself can affect the charge), because these are the key points.
"So this is a good tool to help you choose the consultant may, taking into account the different costs, how it all adds up effects.
"Personally, we do, for our customers, because our breakdown of each cost element, making it as transparent as possible.
However, the site does not make himself into a complete comparison sites, focusing on the charges, which is admirable is clear.
"Provides investors know that this is just one of the factors to consider, then there is no doubt beneficial."
Funds and games: Users can compare three funds, look through the toll they can expect to lose a total cash and percentage values.
Funds and games: Users can compare three funds, look through the toll they can expect to lose a total cash and percentage values.
Fund management industry bodies Investment Management Association is planning to give investors time to do a single simple number in pounds and pence its cost.
Hope agreed by the end of 2013 at the latest methods, although it may take another year, the fund companies began to do their own numbers.
Following the launch of a true and fair calculator, boss Daniel Godfrey said: "IMA believes that it is important to provide consumers with a simple message, they can understand, so that they have a comprehensive view of costs.
This is what we propose, historical single all-inclusive pounds and pence figure along the actual performance. We believe that the actual use of historical data is a better way to make a better understanding. "
He added: "I think it is important for people to know what the costs are, but equally important is that people do not just look at the cost, but the value of the cost is only one factor, which is a very important factor, but it not the only factor. "
Godfrey said, if you look back, you can evaluate the cost relative performance - what a great view of the absolute amount of funds made with respect to objectives and relative to competitors.
This can help investors decide if active funds is likely to increase the value of the top track, where a fund manager's skill will overcome their high transaction costs.
No comments:
Post a Comment