What is the difference between these fees? I can’t figure out what would be my TOTAL annual fee?
|Ongoing charge figure (OCF)|0.939 %|
|Maximum initial fee|5.540 %|
|Maximum management fee|0.750 %|
I got this specifically from https://www.assetmanagement.hsbc.co.uk/en/individual-investor/funds/lu0466842654?t=2 which is HSBC ISLAMIC GLOBAL EQUITY INDEX FUND
The Net Asset Value (NAV) of the HSBC Islamic Global fund already includes all applicable fees and charges, so you do not need to subtract any fees when calculating your investment’s value.
• The Ongoing Charge Figure (OCF) is 0.939% annually. It includes all operating costs, such as management, administration, and custody of assets.
o Details : This is an annual fee that includes all the operating costs of the HSBC Islamic Global fund, such as management, administration, and custody of assets. It is calculated as a percentage of the fund’s average net asset value over a year. The OCF for HSBC Islamic Global is 0.939% annually. This fee is typically deducted from the fund’s assets, so the NAV of the fund already reflects this deduction.
• The Maximum Initial Fee is up to 5.540%, but varies depending on your broker (e.g., 3% or 0%). It is a one-time fee when you invest.
o Details: the actual initial fee you pay may vary depending on your broker; some might charge 3%, and others might charge 0%. For example, if you invest $10,000, and your broker charges a 3% initial fee, you will pay $300 (3% of $10,000). I am using broker with 0%
• The Maximum Management Fee is 0.750% annually, but is included in the OCF.
o Details : This fee is paid to the fund manager for managing the investments of the fund. It is usually calculated as a percentage of the fund’s average net asset value over a year. The maximum management fee for HSBC Islamic Global is 0.750% annually. However, this fee is typically included in the OCF, so you would not need to pay this separately, and it is already reflected in the fund’s NAV.
So, the OCF of 0.939% is your total annual fee, and the initial fee depends on your broker (I am using 0%) but is a one-time charge.
man, JZK for you answer. This really cleared out everything