What is the Ongoing Charge?
The ‘Ongoing Charge’ is a fee applicable to both Mutual Funds and Exchange Traded Funds. This figure, which is usually expressed as a percentage, is an indication of the cost an investor would incur over the year for investing in that fund or ETF. The investor will bear these fees indirectly as the NAV will be negatively impacted by this fee. The Ongoing charge fee includes payments to the management company, payments to persons providing outsources services, registration, regulatory, audit, compliance, legal and professional advisers charges, distribution charges, etc. However this does not include transaction charges as a result of cash inflows and outflows instructed by the investors (entry/exit charges or commissions) nor does it include a performance fee paid to management companies.