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Are unit trusts and OEICs expensive?
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The bid/offer spread within a Unit Trust allows for the initial set-up charges, dealing costs and Stamp Duty. All charges and costs within an OEIC are charged separately as an initial charge which is deducted from your initial investment. The advantage of this is that it is clearer what you are actually being charged.

Depending on the provider and the nature of the Unit trusts and OEICs carry initial charges which can range from around 5.5% to 0%. Funds also attract an annual management charge, usually between 0.5% and 2.5%. When you buy a unit trust, OEIC or any investment with an initial (or 'front end') charge, make sure you can keep it going for the full term, otherwise you could lose out. Some companies are moving away from front-end charges and introduce exit charges which you pay on maturity. Shop around to get the best deal.

Funds available in the Interactive Investor Fund Supermarket attract initial charges ranging between 0% and 1.5% (most are around 1%) and annual management charges between 0.5% and 1.75%.
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