Is Selma's fee a good deal? Practical price example.
Updated
by
Marco Barmettler
Our client asked us to compare our offer with an offer he got from a Swiss bank. Out of friendliness, we will not publish this bank's name. The costs are not estimates, but real numbers found on bank's webpage and in its fund prospects.
| a. Selma | b. Example mutual fund |
Investment amount | CHF 10'000 | CHF 10'000 |
Annual management fee | 0.68% (max) | 0.60% (cheapest fund) |
Product's own costs | 0.22% (average) | 0% |
Transaction fee | 0% | Beware of the small print* |
a. Selma | b. Example mutual fund | |
Asset based fee | 0% | 1% |
Exit fee | 0% | Specific information missing |
Swiss tax statement | included | CHF 10 per fund, min. CHF 25 + VAT |
Deposit costs | 0% | Minimum CHF 90/year |
Total costs | 90 CHF/year | 290 – 353 CHF/year * |
What does that mean in practice?
After 15 years, in 2032, once robots have taken over the world and Elon Musk has built a Hyperloop from NY to Paris, this is where you stand:
A. Selma | B. Mutual Bank | |
Initial investment | 10’000 | 10’000 |
Return on investment | 5% | 5% |
costs in the first year | 0.90% | 2.90% |
running costs | 0.90% | 1.90% |
Account balance in 15 years | + 18'270.9 | + 15'650.05 |
Profit in 15 years | 8'270.90 CHF | 5'650.05 CHF |
