The average fee for a balanced fund of $10,000 is $128 a year. If your balance is $50,000 the average fee you’ll be paying is $635 a year.
The fee will you pay varies based on:
Switching to a lower risk fund to save money isn’t always the best option as your money may not grow over time to meet your investment needs. Instead, look for savings by comparing your fund’s fees with those in similar funds offered by other providers.
You should only be paying higher fees if you’re confident your chosen fund will consistently provide higher returns than other similar funds with lower fees.
You can compare the fees you pay in your fund with similar funds offered by other providers using our KiwiSaver Tracker tool.
Your provider can explain why they charge the fees they do. If you don’t think you’re getting good value for money, use Sorted’s KiwiSaver Fund finder to find a fund better suited to your investment needs.
See what others did with their fees, on our YouTube channel.Next