Explain AIB PIP 3% Bid Offer

Can someone please explain what AIB Ark Life mean when they say my PIP has a 3% bid offer?

I've just finished my PIP SSIA (September) and now have approx. 25,000 of which I'm still contributing the 256 a month. I rang up Ark Life to find out what the fee's/terms of the PIP were and was told that the management Fee was 1.75% and a 3% bid offer.

Is this standard or would I be better off switching to another managed fund with cheaper rates?

Essentially it's the difference between what you buy a unit for and what you get if you sell a unit in the fund. The price might be quoted as 100.00 - 103.00 , the first price being the bid price ( ie what you sell a unit for ) and the second price being the offer price or ask price ( ie what you would pay for a unit ). The spread is the difference between the two quoted prices ie 3% in this case.

demoivre said:

Essentially it's the difference between what you buy a unit for and what you get if you sell a unit in the fund.

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Fair enough but why would I want to know this as I'm not managing the fund.

Or would this mean if I was to take out my 25G out of the fund I would get back 24,250? (25G - 3%)

Yes -- if it's a Bid-Offer spread.

Just think of it as a commission.

3% bid/offer difference=97% of your monthly contribution is invested each month.The encashment value is normally quoted nett of tax.There is no bid/offer reduction on the encashment value.
I have seen saving products with 5% bid/offer difference,your 3% compares well to those.