Is Selma's fee a good deal? Practical price example.

Updated by Marco Barmettler

Investing fees are hard to understand. We're often asked how Selma's price differs from the complicated fees of a classical bank. Our transparent prices keep you safe from nasty surprises. Here's a real life example of why you need to be careful with offers that look cheap on the first glance.

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)


Transaction fee


Beware of the small print*

* This is  what was written on the bank's page: "Die Total Expense Ratio’ (Gesamtkostenquote) zeigt an, welchen prozentualen Anteil des Nettovermögens die Kosten bei einem Fonds pro Jahr ausmachen. Als Kosten gelten dabei alle Aufwendungen gemäss Erfolgsrechnung, einschliesslich Management-, Verwaltungs-, Depot-, Revisions-, Rechts- und Beratungsgebühren. Nicht berücksichtigt werden die Transaktionskosten im Fonds."

a. Selma

b. Example mutual fund

Asset based fee



Exit fee


Specific information missing

Swiss tax statement 


CHF 10 per fund, min. CHF 25 + VAT

Deposit costs


Minimum CHF 90/year

Total costs

90 CHF/year

290 – 353 CHF/year *

* Unfortunately, we couldn't calculate the costs precisely, because of the unclear transaction costs.

What does that mean in practice?

Let's assume you would earn a stable 5% return on your initial CHF 10'000 investment every year . 

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



Return on investment



costs in the first year



running costs



Account balance  in 15 years

+ 18'270.9

+ 15'650.05

Profit in 15 years

8'270.90 CHF

5'650.05 CHF

Because of the compounding costs the difference is staggering  2'620.85 CHF. It's 26.21% of your initial investment!

How did we do?

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