Costs which are not accounted for in the RTER may include initial charges (when a fund is bought), sales charges (when a fund is sold) and custody fees charged by a bank (not internal fees, but those charged by banks at which funds are deposited). The TER is calculated as a percentage of the Schemes average Net Asset Value (NAV).
However, the RTER is not widely used in Switzerland.īut even the RTER does not include external fees, like those charged by a bank or wealth manager for services rendered. The real TER or RTER should include all internal fund transactions, unlike the TER or the synthetic TER. The synthetic TER also leaves out internal transactions, but does include the TER of third-party funds. The brokerage fees which a fund pays to buy and sell securities are not accounted for in the TERs of German and Swiss funds. These include fees charged when you buy into a fund (the “initial charge”) and possible charges when funds are sold (the “sales charge”). The annual management charge is not the true cost of investing, however, a closer estimate is the total expense. It provides information regarding total costs involved annually for. There are other costs which are not included in the TER. It has a total expense ratio of 0.95 per cent. Total expense ratio (TER) is the ratio between total fund costs and total fund assets. Exchange-traded funds (ETFs), on the other hand, often have exceptionally low TERs (under 0.2 percent per year, in some cases).Ĭosts include general management fees, custody fees for fund securities, wages, and costs associated with publication, revisions and administration. These costs typically sit between 0.5 percent and 2 percent per year, but specialized funds (private equity funds, for example) may have much higher costs. A total expense ratio (TER) shows the annual costs of using an investment fund, as a percentage of the assets managed by the fund.
0 kommentar(er)
