Cost & Fees

Using AJ Bell involves various fees depending on the type of account and transactions. Here are the main charges:

Account Charges:

• Shares Account: 0.25% annually, capped at £3.50 per month.
• Funds Account: 0.25% for the first £250,000, 0.10% for the next £250,000, capped at £10 per month.

Dealing Charges:

• UK Shares and ETFs: £9.95 per trade, reduced to £4.95 if you make 10 or more trades per month.
• Funds: £1.50 per trade.

Other Fees:

• No inactivity fee.
• No standard withdrawal fee, but a £25 charge for faster withdrawals.

For more detailed and specific information, you can visit www.ajbell.co.uk

Minimum amount needed to invest 

The minimum amount needed to invest in AJ Bell varies depending on the type of account and investment strategy you choose:

Stocks and Shares ISA: To open a Stocks and Shares ISA with AJ Bell, you need a minimum lump sum investment of £500. Alternatively, you can start a regular investment plan with a minimum of £25 per month​​.

Lifetime ISA: The minimum amount required to open a Lifetime ISA is also £500 for a lump sum investment. For regular monthly payments, the minimum is £25​​.

Dealing Account: AJ Bell’s dealing account requires a minimum regular investment of £25 per month if you choose to invest on a recurring basis. There is no specific minimum for a lump sum investment, giving you flexibility in how much you want to start with​.

For more detailed and specific information, you can visit www.ajbell.co.uk

Types of securities available

AJ Bell Youinvest offers a variety of securities for investors. These include:

Shares: Investors can trade shares across major UK markets and 24 international markets, including the NASDAQ, NYSE, Toronto Stock Exchange, and more.

Funds: There is a wide selection of funds available, including actively managed funds and tracker funds. AJ Bell also provides "Favourite Funds" lists to help investors choose low-cost funds with strong performance records.

Exchange-Traded Funds (ETFs): These are available across various markets and asset classes, providing diversified exposure.

Investment Trusts: These pooled investment vehicles offer another way to access a diversified portfolio of assets.

Bonds: Investors can purchase government and corporate bonds.

Cash Savings: AJ Bell offers options for holding cash within their accounts, which can be useful for those waiting to invest or seeking a safe haven.

For more detailed and specific information, you can visit www.ajbell.co.uk

Types of investment accounts available 

• Self-invested personal pension (SIPP)
• Stocks & Shares ISA
• Lifetime ISA
• Dealing account
• Junior ISA
• Cash Savings Hub

For more detailed and specific information, you can visit www.ajbell.co.uk

Does the platform offer individual stocks? 

Yes

For more detailed and specific information, you can visit www.ajbell.co.uk

Number of funds and stocks available 

Over 2000 funds to choose from

For more detailed and specific information, you can visit www.ajbell.co.uk

Does the platform offer automatic portfolio rebalancing? 

No

For more detailed and specific information, you can visit www.ajbell.co.uk

Is the platform available on mobile?

Yes

For more detailed and specific information, you can visit www.ajbell.co.uk

Is the platform authorised and regulated by the Financial Conduct Authority (FCS)?

Yes

For more detailed and specific information, you can visit www.ajbell.co.uk

Key factors to consider when choosing an investment platform:

• Fees and commissions
• Available investment options
• User interface and ease of use
• Customer support options
• Security measures in place
• Research and analysis tools available
• The platforms reputation and track record
• A platform that aligns with your investment goals
• A platform that aligns with your risk tolerance

*The value of your investments can fall as well as rise and past performance is not a guide to future performance.

Key factors to consider when choosing an investment fund:

Investment Objectives: Clearly define your investment goals and time horizon. Different funds cater to various objectives, such as growth, income, or a balanced approach.

Risk Tolerance: Assess your risk tolerance. Some funds are more conservative, while others are more aggressive. Choose a fund that aligns with your comfort level for risk.

Diversification: Look for funds that provide a diversified portfolio. Diversification helps spread risk across different asset classes, reducing the impact of poor performance in any single investment.

Fund Type: Understand the type of fund you're considering. Common types include mutual funds, exchange-traded funds (ETFs), index funds, and actively managed funds. Each has its own characteristics and management styles.

Performance History: Review the fund's historical performance. While past performance doesn't guarantee future results, it can give you insights into how the fund has performed in various market conditions.

Expense Ratio: Consider the fund's expense ratio, which represents the annual fees and operating expenses as a percentage of the fund's assets. Lower expense ratios generally translate to lower costs for investors.

Manager's Track Record: For actively managed funds, assess the track record and experience of the fund manager. Consistent and experienced management can be an indicator of the fund's potential.

Benchmark Comparison: Compare the fund's performance against a relevant benchmark index. This helps you evaluate whether the fund is outperforming or underperforming its peers.

Distribution History: For income-focused funds, check the fund's distribution history. Understand how often and how much income the fund has distributed in the past.

Size of the Fund: Consider the size of the fund. While a large fund may offer stability, it could also face challenges in deploying capital efficiently. Conversely, a small fund might be more nimble but could face liquidity issues.

Redemption Fees and Liquidity: Be aware of any redemption fees or liquidity constraints. Some funds may charge fees for early withdrawals, and illiquid funds may have limitations on how quickly you can access your money.

Tax Efficiency: Assess the fund's tax efficiency, especially if you're investing in a taxable account. Funds with low turnover and tax-efficient strategies can help minimise tax implications.

Distribution Method: Determine whether the fund distributes income and capital gains periodically or reinvests them. Your preference might depend on your financial goals and tax situation.

Reviews and Ratings: Read reviews and ratings from reputable sources, such as Morningstar or Lipper. These sources provide independent assessments of funds based on various criteria.

Exit Strategy: Understand the fund's exit strategy. If your investment goals change, ensure that the fund allows for a smooth exit without excessive penalties.

*The value of your investments can fall as well as rise and past performance is not a guide to future performance.

Understanding investing fees is essential for investors to make informed decisions and maximise their investment returns.

Here are some common investing fees you should be aware of:

Management Fees: These fees are charged by investment managers or advisors for managing your investment portfolio. Management fees are typically charged annually as a percentage of the assets under management (AUM). They cover the cost of research, analysis, and portfolio management services provided by the investment professional.

Expense Ratios: Expense ratios represent the annual operating expenses of mutual funds, exchange-traded funds (ETFs), and other investment funds as a percentage of the fund's average net assets. These expenses include management fees, administrative costs, and other operational expenses. Expense ratios are deducted from the fund's returns and directly impact investors' net returns.

Front-End Loads: Front-end loads are sales charges or commissions paid when purchasing mutual fund shares. Front-end loads are deducted from the initial investment amount before the remaining funds are invested in the fund. These fees are typically expressed as a percentage of the investment amount and are paid to the investment advisor or broker who sold the fund.

Back-End Loads (Deferred Sales Charges): Back-end loads are sales charges or commissions paid when redeeming or selling mutual fund shares within a specified period after purchase, typically within a few years. Unlike front-end loads, back-end loads are not deducted at the time of purchase but are applied when investors sell their fund shares. These fees often decline over time and eventually reach zero after the specified holding period.

Transaction Fees: Transaction fees are charged by brokerage firms or trading platforms for buying or selling securities, such as stocks, bonds, options, or mutual funds. These fees can vary depending on the type of transaction, the size of the trade, and the brokerage firm's fee structure. Transaction fees can significantly impact the overall cost of trading and should be considered when executing investment transactions.

Advisor Fees: Advisor fees are charges levied by financial advisors or investment professionals for providing investment advice and financial planning services. Advisor fees can be charged as a flat fee, hourly rate, or as a percentage of assets under management (AUM). These fees compensate advisors for their expertise and guidance in managing clients' investment portfolios and financial affairs.

Account Maintenance Fees: Some brokerage firms or investment platforms may charge account maintenance fees for managing or maintaining investment accounts. These fees are typically assessed on an annual or quarterly basis and cover administrative expenses associated with account management, record-keeping, and customer service.

*Understanding and minimizing investing fees is crucial for maximising investment returns over the long term. Investors should carefully review fee disclosures, compare fee structures across different investment options, and consider the impact of fees on their investment performance and overall financial goals.