When money is paid into a fund (such as a pension fund) the allocation rate is the percentage of the money left which can be invested after the charges have been taken off. For example, if the charges were 2% the allocation rate would be 98%.
The percentage of a contribution used to buy units for investment purposes. The percentage will vary depending on factors such as the type of contract, time to maturity, commission and amount of contribution.
The percentage of the clients's money that is actually invested in the policy after the initial charges have been taken out.
This is the percentage of a payment that is invested once charges have been deducted.
The percentage of your money invested at outset before any bid/offer spread.
This is the percentage of your payment that is actually invested (e.g. 75%) after initial charges have been taken into account.
An adjustment made to the sum invested by an individual in respect of certain investment plans. Whilst the allocation rate, in isolation, might apply to increase the sum invested, it needs to be considered in conjunction with any initial charges that might also apply.
The percentage of a contribution that is actually invested in a unit-linked fund after initial charges have been taken into account. The amount invested may be either higher or lower than the amount paid.