What does investing cost? Are there hidden fees?

Updated 1 year ago by Patrik Schaer

Every investment will cost you something. Costs are one of the key factors if your investment will be successful over time.

Since most costs are shown in small percentages, it can be hard to realize just how much they can eat up your returns. 

1. Example of how costs pile up

Imagine you have an investment 50’000.-. You invest it for 15 years. The investment generates a yearly return of 5%.

The difference of paying 1% or 2% in costs would make a difference of staggering CHF 12’148.60 in the end.  That’s almost a quarter of what you have invested initially. Read more on how costs compound.

2. Your costs when investing with Selma

Selma has one fee that includes the costs of the bank and the cost of Selma. In addition, there are product costs, that we try to keep as low as possible. We know that costs are one of the investor's biggest enemies. This is why we are open about investment costs. 🤓

  1. One service fee
  2. External product costs (managed to be as low as possible)

3. Costs Selma does not have

The following fees that you might encounter elsewhere you won't pay at Selma or they are included in our service fee.

  1. Custody Fee
    a fee your pay to your bank for holding your investments
  2. Management Fee
    a fee you pay to somebody for managing your investments that can be a fund, your bank or an asset manager.
  3. Transaction Fees (including stamp duty) 
    fees for buying and selling investments. This also includes the Swiss stamp duty. 
  4. Entry Fee
    a fee to buy into an investment e.g. a fund
  5. Exit Fee
    a fee to sell an investment e.g. a fund
Through Selma you will additionally receive better rates for currency exchange (when buying and selling investments in a foreign currency)

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