Does it matter who you buy your funds from?

GetToYourGoalsFaster

You might think where you buy your funds makes no difference to your investment returns.

It does.

You may know that all actively-managed funds have an Annual Management Charge (AMC). This charge is a percentage that’s shaved off your investment every year.

Almost all companies you buy your funds from will keep a share of this charge. Typically, it amounts to 0.64% of your investment return.

We’re not like most companies. We give all of our share back to you.

This can make a significant impact on your returns. If your fund returns 3%, you’d get 3.64% invested with us (an increase of over 20%). By reinvesting every year, the compound effect of that extra share can make a huge difference to how much income you make.

You can work out how much of a difference it could make to your funds with our funds rebate calculator. Or see a complete list of the funds we offer and how much you could save.

The example below shows how much faster you can get to your financial goals with Interactive Investor:

 

Interactive Investor
Provider paying no rebate

Difference
Year 1  £  105,987.16
Year 1  £        105,500.00
 £        487.16
Year 5  £  133,844.64
Year 5  £        130,696.00
 £    3,148.64
Year 10  £  179,436.28
Year 10  £        170,814.45
 £    8,621.83
Year 15  £  240,852.16
Year 15  £        223,247.65
 £  17,604.51
Year 20  £  323,584.65
Year 20  £        291,775.75
 £  31,808.90
Figures are based on an initial investment of £100,000 into a SIPP with a gross yield of 7% and a net yield of 5.5% after deduction of 1.5% AMC. It assumes an average rebate of 0.64% for Interactive Investor versus a provider who pays no rebate. Pricing is subject to change. In the example above the fund and any income received is reinvested. The Interactive Investor return is net of the £120 + VAT annual Interactive Investor SIPP fee.

Why do we give you back our share of the Annual Management Charge (AMC)?

In a climate of changing regulations and uncertain markets we think it’s important to know how much your investments are costing you. We’ve never liked hidden charges and believe our new pricing ensures you know exactly what you pay for every investment, whatever the investment type.

We charge the same flat fee for all your investments, from funds to shares, whether online or by phone, UK or international.

If you invest in actively-managed funds, you’ll be charged an AMC. Part of this goes to the fund managers to manage the fund, and the rest is divided between the fund platform and us.

We give our full share back to you so you can benefit from this extra percentage return on all your actively-managed funds.

How do I get this extra income for my funds?

The good news is if you already have an account with us, you don’t have to do a thing. We’ll rebate the income we receive on your funds once a quarter.

 

New customers

To get all our share of AMC on your funds, open an account today and invest with us. It’s easy to do and you can be up and running within minutes.

Get even more back when you consolidate your funds

If you have funds elsewhere, transfer them to your Interactive Investor account so even more of your fund investments can benefit.

Remember, you’ll get more income back, each and every year on all of your actively-managed funds.

We'll also give you up to £240 when your transfer by 30 April 2014 (terms apply).

Transferring to Interactive Investor is easy. Simply open an account and go to the Account Admin section to fill out the relevant forms. Send them back to us and we’ll take care of the rest

Investment and trading involves risk. Please ensure you understand these fully before you trade. The value of shares can fall as well as rise and you may not get back the full amount of your investment. Open an account

 

 

 

 

 


 

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Year 1  £  106,055.09
Year 1  £        105,500.00
 £        555.09
Year 2  £  112,481.96
Year 2  £        111,302.50
 £    1,179.46
Year 3  £  119,303.44
Year 3  £        117,424.14
 £    1,879.30
Year 4  £  126,543.76
Year 4  £        123,882.47
 £    2,661.29
Year 5  £  134,228.63
Year 5  £        130,696.00
 £    3,532.63
Year 6  £  142,385.36
Year 6  £        137,884.28
 £    4,501.08
Year 7  £  151,042.91
Year 7  £        145,467.92
 £    5,574.99
Year 8  £  160,232.03
Year 8  £        153,468.65
 £    6,763.38
Year 9  £  169,985.36
Year 9  £        161,909.43
 £    8,075.94
Year 10  £  180,337.55
Year 10  £        170,814.45
 £    9,523.11
Year 11  £  191,325.37
Year 11  £        180,209.24
 £  11,116.13
Year 12  £  202,987.83
Year 12  £        190,120.75
 £  12,867.08
Year 13  £  215,366.37
Year 13  £        200,577.39
 £  14,788.98
Year 14  £  228,504.96
Year 14  £        211,609.15
 £  16,895.81
Year 15  £  242,450.25
Year 15  £        223,247.65
 £  19,202.60
Year 16  £  257,251.78
Year 16  £        235,526.27
 £  21,725.51
Year 17  £  272,962.13
Year 17  £        248,480.21
 £  24,481.92
Year 18  £  289,637.09
Year 18  £        262,146.63
 £  27,490.47
Year 19  £  307,335.90
Year 19  £        276,564.69
 £  30,771.21
Year 20  £  326,121.41
Year 20  £        291,775.75
 £  34,345.66