By MoneyBees
See what a unit trust's sales charge, total expense ratio and platform fee take from your money over the years, with the fee ranges MoneySense publishes for Singapore funds.
Your own assumption.
MoneySense: 1.5% to 5%. Taken off every sum you put in.
MoneySense: usually 1.0% to 2.5% a year. On the fund's factsheet.
Platforms 0 to 0.3% a year; wrap accounts about 1%.
Your fund after fees
$175,846
from $130,000 put in
Fees take
$56,797
24.4% of what it could have been
With no fees
$232,643
at 5% a year
| Cost | Lost by the end |
|---|---|
| Sales charge | $6,979 (you pay $3,900 up front) |
| Total expense ratio | $43,449 |
| Platform or wrap fee | $6,370 |
Each line counts the fee plus the growth that money would have earned. Yearly fees come off the fund value, so they grow with it.
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| Fee | When you pay it | MoneySense range |
|---|---|---|
| Sales charge (front-end load) | Each time you buy | 1.5% to 5% |
| Redemption fee | When you sell | 1% to 5% |
| Switching fee | When you switch funds | About 1% |
| Management fee | Yearly, inside the TER | 1.0% to 2.0% active; usually below 1% passive |
| Total expense ratio | Yearly, from the fund's assets | Usually 1.0% to 2.5% |
| Platform fee | Yearly, on your holdings | 0 to 0.3% |
| Wrap fee | Yearly, on assets under advice | About 1% |
MoneySense notes that 20% to 60% of the management fee is paid by the fund manager to the distributor as a trailer fee.
Under the CPF Investment Scheme, sales charges on new purchases have been 0% since 1 October 2020. Wrap fees are capped at 0.4% a year, and expense ratios at 0.35% to 1.75% a year depending on the fund's risk category.
You put S$10,000 into a fund with a 3% sales charge and a 1.5% total expense ratio, and the fund makes nothing for a year. S$300 goes on the sales charge, so S$9,700 is invested. The expense ratio takes about S$145 more over the year, leaving about S$9,555. Now add S$500 a month for 20 years at 5% a year, with a 1.75% expense ratio and a 0.3% platform fee. You put in S$130,000 and end with about S$175,846. With no fees it would be about S$232,643, so fees take S$56,797, about a quarter.
MoneySense lists a sales charge of 1.5% to 5% when you buy, a redemption fee of 1% to 5% when you sell, a switching fee of about 1%, and a total expense ratio usually between 1.0% and 2.5% a year. Platforms charge 0 to 0.3% a year and wrap accounts about 1%.
Also called a front-end load or initial sales charge, it is a percentage taken off each sum you invest before it buys units. On S$10,000 with a 3% charge, S$9,700 is invested.
The TER is the fund's yearly running cost, including the management fee, as a percentage of its net asset value. It is taken from the fund's assets, so you never see a bill, and it should be disclosed in the fund's factsheet.
The sales charge is paid once on each sum you put in. The TER and platform fee come off the whole fund value every year, so they grow as your money grows, and you also lose the returns those fees would have earned.
MoneySense says 20% to 60% of the management fee is paid by the fund manager to the distributor. It is part of the expense ratio, not an extra charge.
Yes. Under the CPF Investment Scheme, sales charges on new purchases have been 0% since 1 October 2020, wrap fees are capped at 0.4% a year, and expense ratios are capped at 0.35% to 1.75% a year by risk category.
In its prospectus and Product Highlights Sheet, which must be given to you when a fund is offered, and in its factsheet for the expense ratio. Ask the distributor for the sales charge and any platform or wrap fee.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).