A Key Investor Information Document (KIID) is a downloadable document provided by the fund manager which covers the essential features of the fund.
It gives you key facts and figures about the fund, such as investment risk, charges and past performance. You'll find the KIID next to each fund in the fund selection table. Also take a look at the Fund factsheet which will give you an overview of the fund.
Below you'll see an example KIID which includes explanations of what to look out for.
We can also help you get to grips with the basics of funds.
This section tells you the name of the fund, plus the date at which the information was published. It's usually produced on a quarterly basis, so to make sure it's the most recent information it's important to check the date.
This section gives you a quick summary of the fund's main aims and objectives as decided by the fund manager.
This section gives you more details about the costs of investing in a fund. The most common charges include:
|Charge||What it means|
|Ongoing charges||These charges are combined into one overall cost known as an Ongoing Charges Figure (OCF). This is made up of a fund manager's annual management charge, which is taken by the fund manager to cover the ongoing cost of running, managing and administering the fund.|
|Fund entry or exit charge||These costs are associated with making the investment which are charged to the investor when entering or exiting a fund, and which are then added to the fund (not retained by the fund manager).|
|Performance fee||These may be charged where the fund manager achieves a certain level of investment performance from managing the fund.|
The table and graph will show how the fund has performed as percentages over each of the past 5 years. The example chart below doesn’t reflect the performance of a specific fund.
This can help you see how it has performed in different economic conditions and how it has varied year by year.
Each fund is graded on a scale of 1 to 7 which is determined by how volatile its returns have been over the last 5 years. The greater the fund’s volatility, the greater the risk of investing and the greater the potential return.
There are 7 different risk profiles which move up the scale from 1 (lowest) to 7 (highest).
When choosing your fund, you’ll need to ensure that it fits the risk profile that you’re most comfortable with.