What does OCF stand for?

22 July 2022

Question by Christine

Excuse the ignorance, but what does OCF stand for?

Answered by Boring Money

Hi Christine

It's a good question - we're pretty bad in financial services with our jargon!

It stands for Ongoing Charge Figure. The figure quoted covers the vast majority of the charges you would expect to pay for a fund or investment portfolio on an ongoing basis.

What the OCF doesn't cover however, are transaction charges. It is impossible to know ahead of time how many buys or sales a portfolio management team will decide to make ahead of time, however each will incur transaction costs on top, so managers estimate this figure.

Unless you're buying a fund or portfolio that actively buys and sells a lot of holdings regularly, you can be safe in the knowledge that the quoted OCF will be very close to the amount of charges you'll actually face on an ongoing basis.

Hope this helps.


Answered by

Boring Money