OCF (Ongoing Charges Figure)

The OCF replaced the older Total Expense Ratio and covers the manager’s annual fee, depositary and custodian costs, audit, and administration. It is deducted daily from the fund and reflected in the NAV, so you never see a bill. UK passive funds typically run from 0.05% to 0.25%, while active equity funds sit between 0.50% and 1.25%. The OCF excludes portfolio transaction costs, which the FCA requires to be disclosed separately in the Key Investor Information Document. Over 30 years, an extra 1% a year in charges can shave 20% to 25% off your final pot.