Fund fee drag
The yearly cost looks small and the compounding doesn’t. Put two funds side by side and read the gap in euros.
Yearly, before any fund costs
Fund A total yearly cost
Fund B total yearly cost
After 30 years, fund A leaves you with
€113,315 more
€524,301 against €410,985. The cost gap takes 34% of fund A’s total gains.
€190,000
Total you put in
€524,301
Fund A at 0.2%
€410,985
Fund B at 1.5%
Costs are charged yearly as a share of the fund, and returns compound monthly. Real returns vary and past results guide nothing. For information only, not financial advice.