Withdrawal from Investment

I withdrawn £10 from investment to check how withdrawal works. Even though the returns are in positive my return money showing £9.81. That’s 1.9% loss. In effect I don’t get what I am trying to with draw. I would be better off keeping the money in my bank account rather here. Am I right?

Interesting.Had no idea there was an (admin?)fee for withdrawals.

I was not sure if that was an admin fee. I have not been given any notifications about this. I am just thinking what is going behind this. I will contact for help and see what the problem is. If anyone else here can explain what that is that would be great.

I had this reply asking a similar question:

If you sell out all of your Funds investments, it may also be that you receive an amount that is slightly lower than the amount you requested. This is because the product provider charge their monthly fee on the units sold, for the amount of time that month you had funds invested. This is around 0.01% of the average balance of that month (0.15% annually), and will be reflected on your statements.

So it is clear. We save the money. They invest and earn through our money. When we try to withdraw our money they charge a fee on the money they used to make their money. My return is 1.9% lower than my expectation. I can live with 0.01% or 0.15% but 1.9% is quite a lot. I am moving all my money out of Plum from the investment. I will be checking the same for withdrawals from my savings account. If they charge a fee on it, that would the end of my relationship with Plum.

When I contacted Plum, below was the response.

When you instruct Plum to sell your investment, Plum instructs the product provider to sell the fund units that correspond to the requested amount at the next trading cycle of that fund.

Those units will be sold at the price of the next trading cycle. This means the sale price of the fund isn’t yet known when you instruct Plum to sell. If the price moves up the next day, you will get a bit more than you asked to sell out. If the price moves down, you will get a bit less.

For example: if you have 2 units of the Imaginary Fund (each worth £50), at a total value of £100, and you tell Plum to sell £50, we’ll put an order in to sell 1 unit. Because the funds trade once a day, the price at which you will sell this unit isn’t known until the transaction is completed, 2 days after.

  • If the price grows to £51 per unit, you will get £51

  • If the price drops to £49 per unit, you will get £49

If you sell out all of your Funds investments, it may also be that you receive an amount that is slightly lower than the amount you requested. This is because the product provider charge their monthly fee on the units sold, for the amount of time that month you had funds invested. This is around 0.01% of the average balance of that month (0.15% annually), and will be reflected on your statements.

Hope this is helpful. :slight_smile:

1 Like

Yes, you have to also bear in mind that the price still fluctuates as the sale is being processed for your withdrawal. The actual amount you get for the sale will depend on:

  • fees
  • the price at the exact time of the sale transaction