What Is OCF | Ongoing Charges Figure
In the world of ETFs and funds, OCF usually means Ongoing Charges Figure.
This is the yearly cost of running a fund, shown as a percentage of the fund’s value.
It is very similar to TER and is often used in fund documents.
OCF tells investors how much a fund costs to hold each year.
How to calculate OCF
OCF (%) = Ongoing Annual Fund Charges / Average Fund Assets × 100
Real-Life OCF Example
If a fund’s ongoing annual costs are $1.5 million and its average assets are $300 million:
OCF = 1,500,000 / 300,000,000 × 100 = 0.50%
That means an investor pays about $5 per year for every $1,000 invested.
What is a good OCF?
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Below 0.25% = very low cost
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0.25% to 0.75% = fairly normal
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Above 1.00% = expensive for many passive funds
Why OCF is important
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Helps compare fund costs
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Lower charges can improve returns
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Important for ETF and fund selection
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Useful for long-term investors
Note: In other finance contexts, OCF can also mean Operating Cash Flow, but in an ETF/fund glossary, Ongoing Charges Figure is usually the intended meaning.