The investment fee audit: six charges that change your net outcome
Compare the complete cost chain, not just the advertised fund fee.
One percentage rarely tells the whole story
The advertised management fee may cover only one layer. Custody, platform, underlying fund, advice, transaction and foreign-exchange costs can sit elsewhere. Insurance-based investment arrangements may add risk premiums and acquisition or surrender effects. Ask for a full cost schedule tied to the actual proposed account size and contribution pattern. A cheap-looking product can become expensive when used differently from the example in the brochure.
Separate recurring and event-based charges
Put recurring charges in one column and charges triggered by an event in another. A minimum custody fee affects small accounts disproportionately. A transfer fee matters when changing provider; an exit penalty matters when plans change. For funds, distinguish the disclosed ongoing expense measure from trading costs and transaction spreads. Ask whether any cost is already embedded in reported performance so it is not counted twice.
Compare equivalent mandates
A self-directed account is not the same service as a managed portfolio or a savings policy with insured benefits. First align exposure, currency, contribution flexibility and services. Then judge the additional price against what the service actually delivers. FINMA’s Financial Services Act overview emphasises transparency, diligence and honesty; a written explanation of charges and remuneration should be part of a serious decision, not an awkward afterthought.
Hypothetical annual cost comparison
On an unchanged CHF 50,000 balance, a hypothetical recurring charge of 0.5% equals CHF 250 and 1.5% equals CHF 750 for one year. The CHF 500 difference is arithmetic, not a forecast of investment performance. Include minimum charges and transactions before deciding. If a higher-priced service reduces avoidable mistakes or provides protection you genuinely need, evaluate that separately rather than assuming price alone establishes value.
Test contributions and early departure
Run the comparison using your expected monthly savings, a year with no contribution and an early closure. Ask for surrender values where relevant and distinguish paid premiums from capital actually invested. Foreign-exchange mark-ups can be especially important for frequent small purchases. Obtain the rate methodology, not merely a claim that currency conversion is convenient. A cost audit should reveal which actions you can change and which charges are contractual.
Keep a decision record
Request the tariff, contractual terms, product information and remuneration disclosures in a durable format. Record why the chosen service is worth its total price and when to revisit it. Avoid switching repeatedly merely to chase a headline discount, because transfer, tax or exit consequences can erase the saving. Clearwise can organise a comparison, with securities recommendations handled within an appropriate disclosed professional mandate.
Use the same measurement period
Request a cost estimate for a complete year and for the expected holding period, not a promotional first month. Note whether fees are charged on average assets, year-end assets or each payment. If markets change, the franc cost can change even when the percentage does not. Keep assumptions explicit and obtain the provider’s calculation. This prevents an arithmetic comparison from silently mixing different balances, service periods and investment exposures, especially when one offer includes a temporary introductory discount.
Sources and further reading
Original Clearwise analysis. External reporting provides context; rules and contract terms must be verified with the competent authority or provider. Some press articles may require a subscription.
- Reference FINMA: Financial Services Act ↗
- Reference Federal Financial Services Act ↗
Apply this to your situation
Compare your actual documents and clarify what matters before making a commitment.
Request a free consultationGeneral guidance, not a binding quote or personalised legal, tax or investment advice. Examples are hypothetical and results are not guaranteed.
