How Much Are You Really Paying When You Invest?
When we invest, we usually focus on expected returns and risks. However, there’s one factor that often goes unnoticed: investment costs. These can make a significant difference in your long-term results.
The Visible Costs
These are the ones typically disclosed upfront:
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Management fees: an annual percentage charged by the fund manager.
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Performance fees: applied when the fund outperforms a given benchmark.
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Brokerage and custody fees: related to trading and safekeeping of assets.
These costs are usually detailed in the fund’s prospectus or factsheet.
The Hidden Costs
This is where many investors lose money without realizing it:
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Spreads: the gap between an asset’s buying and selling price.
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Opportunity costs: investing in vehicles with low diversification or liquidity can limit returns.
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Conflicts of interest: in traditional finance, advisors sometimes recommend products that generate them higher commissions.
The Impact on Your Wealth
It may seem small, but a 1% annual fee can reduce your accumulated wealth by more than 20% over 20 years. Compounding magnifies the effect of every extra cost.
Our Philosophy at Nautic Invest
At Nautic Invest, we believe in full cost transparency. Our advisory approach is centered on:
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Acting on the client’s side (buy-side), with no hidden interests.
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Optimizing the cost-benefit balance of every portfolio.
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Negotiating the best possible conditions with managers and custodians.
Because at the end of the day, what matters is not just how much you earn, but how much your investment truly contributes to your cash flow and long-term results.