With investments there are a few parties involved, which charge fees in different ways. To be transparent, Plum has decided to charge it’s own fee of £1 a month for access to any investments, and charge provider fees through at cost.
When you invest in funds there are three elements to the fees.
- Plum Investments - Monthly Fee (£1 a month)
- Fund Management Fees (0.15% for funds, free for RS)
- Fund Fees (0.22% - 0.8% for funds, free for RS)
Plum Investments - Monthly Fee
Plum charges £1 a month for access to investments. This enables us to build a sustainable business while keeping Plum a product that in its core everyone can use.
This is £1 charged monthly for having money in the investment product (first month free, then charged on the first day of the month you have money invested). Early users will get a free period.
Fund Management Fees
Fund Management Fees, or Provider Fees are charged by the administrator of the funds, Gaudi Regulated Services LTD - a well-established financial company. These are charged for maintaining the investment account, e.g. buying, selling, funds, preparing statements, managing the ISA, etc.
The management fees are 0.15% of the value of the fund, charged monthly, or pro-rata if a fund is closed.
Fund Provider Fees
Fund fees are charged by the fund providers for providing the service of creating a fund. These fees are not reflected in any statements, as the fund providers simply adjust the price every day to collect the fees (they take money out of the fund daily). The funds therefore just get a little bit less valuable each day (if nothing else happens).