Ongoing charges figure (OCF) definition
Investment funds charge two types of fees. The first is a ‘one-off’ charge, whereby the fund will take a percentage of an investor’s money on entry. The second refers to the ongoing charges figure, which takes the wide variety of costs of running the fund into account, such as operating costs, annual management charge (AMC), administrative costs and transaction charges incurred as a result of buying or selling investments.
This is seen as the most accurate way of measuring how to invest in a fund. OCF, or ‘Ongoing charges’, were previously known as the ‘total expense ratio’, or TER.