Interactive Investor

Investment Pathways

Investment Pathway option 3:
Vanguard Target Retirement Fund 2020

Objective: I plan to start taking my money as a long-term income within the next five years

Please note: our Investment Pathway options are intended to meet a broad objective, and are not a personal recommendation. This means we have not assessed your investing knowledge and experience, financial situation or detailed investment objectives.

Why was this fund chosen?

This fund aims to achieve an increase in value and gradually change investment allocation moving from higher risk (such as shares) to mainly lower risk (such as bonds) investments as 2020 is approached and passed, for those who want to take income before 2025. The fund invests more than 80% of its assets in passive funds that track an index.

Things to consider

The market may fall as well as rise and this fund is exposed to market and foreign currency risk, which means you could lose some or all of your investment. Inflation can also erode the real value of the fund. Past performance is not an indicator of what may happen in future.

What is the fund charge?

The ongoing charges figure (OCF) is 0.24%. 

This represents some of the fees which the fund manager will take for running the fund.

IMPORTANT: The OCF does not include some other Fund Manager operating costs and charges, including Fund Manager transaction costs and performance fees. For a full breakdown of the costs and charges information about an investment, please visit the factsheet page and click on the link under ‘Documents’ to request the Cost Disclosure Document.

What is the cost of buying or selling units in the fund?

You will need to place a trade to purchase this fund.

  • Your first trade each month is free (in the form of a £7.99 trading credit).
  • Additional trades usually cost £7.99. If you have chosen our Funds Fan or Super Investor service plan, this is reduced to £3.99.
  • Single trades with a value over £100k cost £40 each.