Effect of charges or deductions

The effect of charges/deductions figures indicate how charges deducted from within the fund can affect what you might get back. They are designed to help you compare funds to other comparable within the industry with regards to charges, expenses and overall investment performance. An assumption is made that the underlying investments grow by 6% (unit trust) or 7% (ISA or ‘wrapped’ products) which are quoted guideline yield figures set by the industry. Allowance is made for the annual management charges and other expenses borne by the fund, which include trustee fees and expenses, registrar fees, audit fees and FSA fees. Dealing costs are not included.