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Investment Insights

How do I know what I'm paying for?

Kiwi Invest

Written by Kiwi Invest

Keeping you up-to-date with all the latest updates at Kiwi Invest.

Friday 6 September, 2019

Knowing exactly what you're paying for? We'd call that smart.

In the broader financial and investment industry, fees and charges can be as widespread as you’d think... but not always as visible as you’d want them to be.

Here’s our guide to getting as much transparency and efficiency as possible:

 

fee_transparency

Advice Fees

What you’re paying for investment advice, and the services that you’re entitled to for this fee, need to be clearly stated in an adviser’s Disclosure Statement.

Headline Management Fee

What you pay your fund manager. This should be detailed in a fund disclosure document.

Platform Fees

Some advisers use platform providers for reporting and security selection... and pass fees on to you.

In-fund costs

If you invest in funds – make sure you know what trustee, audit, or performance-based fees, or other costs may be deducted.

Brokerage

Buying and selling shares creates this cost.

Check what your provider charges, and who it is ultimately paid to... it might be them.

Exchange Traded Funds

These look like shares – but they charge like funds, with management fees and in-fund costs.

Margins

Are you getting inflated rates on foreign exchange transactions – including currency, term deposits or bonds? It’s worth asking.

 

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