When saving in mutual funds, entry and exit costs, transfer costs and fixed costs (also referred to as loads) are important.
Entry, transfer, exit loads are stated as a percentage and are calculated from the value of the pay-in, pay-out or transfer.
- Entry loads – they are incurred with each payment into the fund and are calculated from the value of the payment into the fund (e.g. entry load amounts to 3 %; we pay 3,000 EUR into the fund, so the entry load is 90 EUR);
- Exit loads – they are incurred upon pay-out from the fund;
- Transfer costs – costs incurred when transferring from one sub-fund to another.
Fixed costs or the total operating costs include the management fee, the custody fee and other costs charged to the assets of the sub-funds. They are deducted daily from the fund’s value of units. The costs shown in the KIID or monthly report are the estimated costs, while actual costs are shown in the annual report. These costs are subject to change. The returns of the funds shown in the monthly reports or fund price lists are the returns already after deducting fixed costs.
The main advantage of saving in funds at SKB Bank, compared to other providers of saving in funds, is that there are no entry or exit loads!