How much does a 1% fund fee cost over 30 years?
On a €10,000 investment growing at 6% a year for 30 years, a 1.0% ongoing charge leaves roughly €43,000, while a near-identical fund charging 0.2% leaves about €54,000. That 0.8% yearly difference compounds into roughly a fifth of your final pot — money lost to fees, not markets.
How to do it
- Open your fund's factsheetPull up the factsheet or Key Information Document for the fund you hold or are considering. Your broker's fund page usually links to it.
- Find the ongoing-charge lineLook for the row labelled ongoing charge, ongoing charges figure, OCF, or total expense ratio. That percentage is the fee you pay every year, on your whole balance.
- Find a near-identical fund on the same marketIdentify another fund tracking the same index or market — for example, another global or S&P 500 tracker — so you're comparing like with like.
- Compare the two ongoing-charge numbersPut the fees side by side. A gap of even 0.8% a year compounds into a large slice of your pot over decades.
- Hold the cheaper one when they track the same thingIf both funds follow the same market, the lower ongoing charge is the better long-term hold. Check the tracking difference too, not just the fee.
Questions that come up
Does a difference of less than 1% a year really matter?
Yes. Fees are charged on your whole balance every year, so they compound against you. Over 30 years, an extra 0.8% annual charge on a €10,000 pot growing at 6% costs roughly €11,000 — about a fifth of the final total. The longer you hold, the larger that gap grows.
Where exactly do I find the ongoing charge?
It appears on the fund's factsheet and its Key Information Document, usually near the top with the other costs. It's sometimes labelled ongoing charges figure, OCF, or total expense ratio. Your broker's fund page often shows it too, right next to the fund name.
Is the cheapest fund always the best choice?
Not automatically. A lower fee only wins when both funds genuinely track the same market or index. Check the tracking difference and which index each one follows first — a slightly pricier fund that tracks its index more tightly can beat a cheaper one that lags. Same market first, then lowest fee.
Full transcript
Find the ongoing-charge line on your fund factsheet — that's your annual fee. Compare it to a near-identical fund tracking the same market. Now grow ten thousand euros at six percent for thirty years. The one-percent fund lands near forty-three thousand; the cheaper, fifty-four — a fifth of your pot, gone. Open your factsheet, read that line, compare before you hold.