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Calculator launched to help investors understand fund costs

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
01/05/2013

Fund supermarket Charles Stanley Direct has launched an online calculator to help consumers understand the benefits of transferring their investments to “clean” funds.

The calculator shows investors how much fund commission has really been costing them by showing the difference in price between traditional, “bundled” funds and “clean” funds.

Investors are asked to enter the current annual management charge (AMC) for their fund using bundled pricing, then the initial investment amount, an annual growth level and the time period for the investment.

They also input the ‘rebate’, ‘loyalty bonus’ or ‘cashback’ given by their current platform.

The calculator shows the possible savings that may be made for new investments via the Charles Stanley Direct platform rather than through an investment platform using bundled pricing.

Rob Hudson, head of Charles Stanley Direct, said:

“We are hearing more and more now about the death of the old direct platform and discount broker model where large commissions were retained in exchange for small cash-backs or loyalty bonuses. Other direct to client platforms are beginning to slowly accept this now and starting to plan fundamental alterations to their client propositions accordingly. We are already there and believe that private investors should learn about and be able to access this cheaper way to hold funds right now.”

Charles Stanley Direct offers clean priced units and ‘conversion to clean’ for transfers.

charlesstanleycalculator