Money & WorkFact

How a 1.3% fee eats €22,000.

The total expense ratio (TER) shows how much a fund withholds from its assets each year. It sounds trivial but works like negative compound interest. €10,000 at a 7% gross return over 30 years: with 0.2% costs it becomes about €72,000, with 1.5% costs only around €50,000. That 1.3-point difference costs you €22,000, nearly a third of the result.

Useful: Costs are the only thing about an investment you know for certain in advance.

Source: de.wikipedia.org

InvestierenKostenMathe

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