← Back to Learning Journey

👁️ What You See

Management Fee (TER) 1.5 – 2.5%

🧊 What's Hidden Below the Surface

Entry Fee (Front-load) 2 – 5%
Exit Fee (Back-load) 0 – 3%
Performance Fee 10 – 20% of gains above benchmark
Transaction Costs (Turnover) 0.5 – 1.5% hidden in fund reports, not in TER
Bid-Ask Spread Costs 0.1 – 0.5%
Distribution / Trailer Fees 0.5 – 1.0% paid to your bank/advisor from YOUR money
Switching / Conversion Fees 0 – 1%
Custody Fees 0.1 – 0.3%

💸 Real Total Annual Cost of a Typical SICAV

3% – 5%+ per year

vs. a typical ETF at 0.07% – 0.20%

📉 See the Impact: SICAV vs. ETF Over Time

€50,000 invested for 25 years at 8% gross market return.

🏦 Active Fund (SICAV)

Gross return8%
Total fees-3.5%
Net return4.5%
Entry fee lost-€1,500
After 25 years €143,922

📈 Index ETF

Gross return8%
Total fees-0.15%
Net return7.85%
Entry fee lost€0
After 25 years €330,516
💰 Difference: the SICAV cost you €186,594 in fees and lost compounding!

📊 Why Active Management Almost Always Loses

📉

SPIVA Scorecard

92% of active fund managers underperform their benchmark index over 15 years (S&P Dow Jones SPIVA data).

🎰

Survivorship Bias

Poorly performing funds are quietly closed or merged. The published "average" only shows survivors.

🏦

Conflicts of Interest

Banks earn commissions for recommending their own expensive SICAVs. They have zero incentive to recommend cheap ETFs.

🔄

Excessive Turnover

Active funds buy & sell frequently, generating hidden transaction costs and tax events not shown in the TER.

🧮 Calculate YOUR Cost of Active Management

Enter your numbers to see how much active fund fees really cost you.

ETF Final Value —
SICAV Final Value —
Money Lost to Fees —
% of Returns Lost —

✅ What Should You Do?

1

Check your existing funds — Ask your bank for the KIID/KID document and look at the "Ongoing Charges" + entry/exit fees.

2

Switch to low-cost ETFs — Open an account with a low-cost broker (DEGIRO, Bolero, Trade Republic, Interactive Brokers).

3

Choose broad index ETFs — VWCE (All-World) or IWDA + EMIM for global diversification at ~0.2% fees.

4

Automate monthly investments — Set up a standing order and forget about it. Let compounding work for you, not against you.