What fees does a managed fund or ETF charge?
Four charges sit inside the fund, and anything you pay to reach the fund sits on top.
- Management fee - the base annual cost, disclosed as an MER or ICR
- Performance fee - a share of returns above a hurdle
- Buy-sell spread - the gap between the application and redemption prices
- Transaction costs incurred inside the fund
If you invest through a platform or an adviser, their fees are additional. Adding every layer together gives your true total cost - which is rarely the number quoted in marketing.
Factual and educational information only. Nothing on this page is financial product advice, a recommendation, or a Shariah ruling. Consider your circumstances and the product's disclosure documents, and seek licensed advice and qualified scholarly guidance before acting.