Do investment fees affect your investment portfolio over 20 years?

These fees may seem small, but over time they can have a major impact on your investment portfolio. The following chart shows an investment portfolio with a 4% annual return over 20 years when the investment either has an ongoing fee of 0.25%, 0.50% or 1%. Notice how the fees afect the investment portfolio over 20 years.

Do fees affect investment returns over time?

Investors should also consider the potential impact of fees on their investment returns over time. While small differences in fees may not have a significant impact on investment returns in the short term, they can add up over time and significantly impact investment returns over the long term.

How do transaction fees affect my investment portfolio?

Transaction fees are charged at the time you buy, sell or exchange an investment. As with any fee, transaction fees will reduce the overall amount of your investment portfolio. How do ongoing fees affect your investment portfolio? Ongoing fees can also reduce the value of your investment portfolio.