Exit Charge

Some investment products such as unit trust s sometimes have exit charges. Also known as a Back-End Load, the exit charge will be imposed if you decide to cash your investment chips in.

Such charges are actually quite rare these days and are usually part of a deal which involves reduced initial and annual fees.

You are only likely to face a back-end load from a unit trust company. The size of the exit fee varies. It may be a fixed percentage around 3% or it may be on a sliding scale which will depend directly on how long you have held your invest for - reducing, say, from 5% at the end of year one to 1% at the end of year five.

Remember, these percentage charges will be calculated on the size of your investment at the time you cash the fund in. You are almost certainly going to be better off paying an initial charge than an exit charge in terms of the actual financial cost.

© Money Only Limited 2006 - 2008 | Company Number 6007897
Consumer Credit Licence 595974 | Data Protection Z9806434
Legal Information | Disclaimer | Privacy & Cookie Policy | Terms

We present information which we obtain from independent sources and do not give financial advice. You should check rates and terms with the product provider. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.