Our research team has developed a simple way to demonstrate the potential impact of fees and costs over the years on your investments. We call it the 'Netwealth Wallet Card' and every savvy investor should carry one.
Take the highlighted example of a £500,000 portfolio invested over 10 years and generating a 6% gross return. Using a cost-effective, low-fee investment manager like Netwealth vs a traditional wealth manager – one that has a not-uncommon 2.2% all-in cost of investing – could leave you better off by £112,000.
Although of course not all traditional wealth managers have a 2.2% all-in cost of investing (the average is 1.86%, according to research from Numis Securities1) the above illustrates how wary you should be of the fees you pay over time. If you are not sure how much in total you are currently paying, you should ask your wealth manager or IFA for a full breakdown of fees and charges.
You can download an electronic copy of the wallet card by clicking the image above; alternatively, if you would like a printed card please contact us at email@example.com and we will gladly send you one at no cost.
Please remember that when investing your capital is at risk.
1 Average all-in costs of investment with a traditional wealth manager is taken as the average TER (Total Expense Ratio) of wealth managers listed in the latest available research by Numis Securities and Citywire, as published by Citywire Wealth Manager in February 2015 (http://citywire.co.uk/wealth-manager/news/discretionary-fees-laid-bare-let-the-calculations-begin/a799209).