1 | This spreadsheet is designed to show the portfolio size that an investor needs to make it more economical to be your own fund manager. The table below shows a portfolio size versus the number of holdings in the portfolio. The % displayed is the annual cost of running the portfolio factoring in taxes, commissions and any optional advisory/subscription based products that an investor may use/pay for. When the % is coloured red it is above the bar of 4% which is arguably the typical cost of investing in a 'fund'. | |||||||||||
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3 | Inputs (edit as required) | |||||||||||
4 | Stamp Duty | 0.50% | Stamp Duty on purchases is currently 0.5% in the UK | |||||||||
5 | Commission (£ per trade) | 10 | The commission paid in £ per trade at a broker (typically £10 in the UK) | |||||||||
6 | Bid/Ask Spread | 0.50% | Small caps are less liquid and can have higher spreads of even up to 5% (0.55% is generally a typical spread) | |||||||||
7 | Portfolio Turnover | 80.00% | The % of the portfolio bought or sold annually - 100% equals buying and selling ALL positions once | |||||||||
8 | Advice/Subscriptions (£ p.a.) | 179.99 | Any subscription service (e.g. http://www.stockopedia.co.uk is 179.99 annually ) | |||||||||
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11 | Annual cost of running a portfolio based on the portfolio 'size' and the number of stocks held / NB - 'Red' limit is above 4% costs annually | |||||||||||
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13 | Portfolio Size (£) | |||||||||||
14 | No. of Stocks in portfolio | 5,000 | 10,000 | 20,000 | 30,000 | 50,000 | 100,000 | 250,000 | 500,000 | 1,000,000 | 10,000,000 | |
15 | 1 | 4.72% | 2.76% | 1.78% | 1.45% | 1.19% | 1.00% | 0.88% | 0.84% | 0.82% | 0.80% | |
16 | 5 | 6.00% | 3.40% | 2.10% | 1.67% | 1.32% | 1.06% | 0.90% | 0.85% | 0.83% | 0.80% | |
17 | 10 | 7.60% | 4.20% | 2.50% | 1.93% | 1.48% | 1.14% | 0.94% | 0.87% | 0.83% | 0.80% | |
18 | 15 | 9.20% | 5.00% | 2.90% | 2.20% | 1.64% | 1.22% | 0.97% | 0.88% | 0.84% | 0.80% | |
19 | 20 | 10.80% | 5.80% | 3.30% | 2.47% | 1.80% | 1.30% | 1.00% | 0.90% | 0.85% | 0.80% | |
20 | 25 | 12.40% | 6.60% | 3.70% | 2.73% | 1.96% | 1.38% | 1.03% | 0.92% | 0.86% | 0.81% | |
21 | 30 | 14.00% | 7.40% | 4.10% | 3.00% | 2.12% | 1.46% | 1.06% | 0.93% | 0.87% | 0.81% | |
22 | 50 | 20.40% | 10.60% | 5.70% | 4.07% | 2.76% | 1.78% | 1.19% | 1.00% | 0.90% | 0.81% | |
23 | NB - 'Red' limit is above 4% costs annually | NB - 'Green' limit is below 2.5% costs annually | ||||||||||
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25 | £30k looks the optimal 25 stock portfolio if rebalanced 100% each year | |||||||||||