Managed funds fees

The price of investment fund advice

Some advisers may directly charge fees for their services. Ask your financial adviser for details up front.

Your financial adviser usually receives a payment or commission from the investment provider when you buy an investment. These fees are generally not an extra cost to you, and you don't avoid a commission fee if you invest in the managed fund directly with the provider.

Typical fund management fees

• Entry fund fee
  Generally speaking, you can expect to pay a fee when you invest in a super fund or managed fund. Some funds charge an entry fee, exit fee, or both. Check your fund's PDS carefully.
• Annual fund management fee
  Your superannuation fund or managed fund will generally charge an annual management fee. This fee is usually a percentage of your annual investment amount, depending on the fund and the assets being invested. This fund fee represents the price of the fund manager's services and the costs of administration.
• Switching funds fee
  You may see a switching funds fee outlined in the PDS. This is the cost of switching from one investment type to another within the same company's range of investments. Managed funds often allow a certain number of switches per annum at no charge. If fees apply, charges will be deducted from your distributions.
• Exit managed funds fee
  When you need to pull money out of an investment earlier than planned you may need to pay an exit fee. Some funds charge considerable exit fees, so make sure you take this into account before you choose a fund, and before you exit a managed fund.

Also read more about super fund fees.