An annual percentage a fund or manager charges on the money invested. It is taken every year, so its effect compounds against you.
An example
Over 20 years, going from a 5% to a 4% net return because of one point in fees cuts a €10,000 investment from about €26,533 to €21,911.
Learn more
- What changes if you contribute at the start of the month?
- How much of the final balance did you put in?
- What does one point of annual fees cost over the long run?