What are the fees and charges for my Tax Free Plan?
An administration charge of 0.75% per annum of your fund value will be charged. This will be deducted at the end of every month. If you don’t have a regular investment set up, the administration charge will be a minimum of R20 per month.
Administration charges can be reduced with our Investment Maximisers.
Asset management fees are also applicable but the amount will depend on the fund(s) you choose.
What are Investment Maximisers?
Investment Maximisers can help you make the most of the growth on your investment.
- Reduce administration charges from 0.75% per year to 0.50% per year, when you choose underlying funds managed by Old Mutual.
- Refund of administration charges if, at the end of each tax year, you have invested at least R30 000 in that year, across your Old Mutual Invest plans. We will refund* up to half of the administration charge you paid during that tax year.
*The refund will be paid proportionately into the underlying funds in your Tax Free Plan.
What are the fees if I apply via an adviser?
All adviser fees are paid by you to your adviser. Old Mutual facilitates the payment on your behalf. You can negotiate these fees and the fees could be a combination of the following:
Fees are paid for initial financial advice given when applying for this plan, and which underlying investment funds you choose when setting up a regular investment at the start.
If you choose to receive ongoing financial advice, your adviser will provide you with ongoing advice on the product and your chosen investment funds.
There are three types of adviser fees (all including VAT), or a combination of them, that might be applicable.
- a) Financial planning fee: Payable when a regular investment is set up and can be negotiated up to the amount of the first regular investment you pay (capped at R2 750).
- b) As-and-when advice fee: Negotiable between 0% - 3.45% of each contribution.
- c) Ongoing advice fee: Negotiable between 0% - 1.15% per annum (calculated as a percentage of your total investment value).
The as-and-when advice and ongoing advice fee work together in that the maximum of both cannot be paid. If one is higher, the fee for the other can be reduced accordingly.
How are advice fees paid?
Financial planning fees can be paid as a once-off amount upfront, deducted from your first regular investment, or as a monthly charge until the full financial planning fee has been paid off.
Can I change the level of advice fees?
You can change both the amount and the recipients of future advice fees at any time. Payments that have already been made cannot be reversed.