Methodology · reviewed
Fee drag
Every fund takes a yearly charge from the money it holds, called the ongoing charges figure (OCF). Small percentages add up, so we show roughly what it comes to in pounds on £10,000 over five years.
The formula
fee drag (£) = 10,000 × (1 − (1 − OCF)⁵)
The OCF compounded over five years on a £10,000 holding that is otherwise assumed not to move.
Worked example
An OCF of 0.22% a year: 10,000 × (1 − 0.9978⁵) ≈ £110 over five years.
How it is done
The OCF comes from the fund’s listing data (TradingView) or the issuer.
The returns we show are already after this charge — the fund takes it from its own value. Fee drag is shown so you can see its size, not to be subtracted again.
Limits to know about
- If the holding grows, the charge in pounds grows with it; if it falls, the charge shrinks. The figure is a simple guide, not a forecast.
- Platform, dealing and advice fees are separate and not included.
- Transaction costs inside the fund are not part of the OCF.
Sources
- TradingView (expense ratio)
- Issuer documents
Reviewed . If a figure on the site does not follow this method, tell us. This is information, not advice.