It was lightly mentioned in active vs passive that passive is less fees.
But the effect of fees makes the a big difference on your overall performance and it deserves a section on its own here are 2 sources.
SECvanguardMoneyWeb 10x
And reality is in South Africa we often have over 2% difference in fees especially in the retirement annuity space. Then you also tac on the advisor fee that normally falls in the range of 0.5% to 1.5%, some providers have platform fees as well. So the fee grows allot.
It was lightly mentioned in active vs passive that passive is less fees.
But the effect of fees makes the a big difference on your overall performance and it deserves a section on its own here are 2 sources. SEC vanguard MoneyWeb 10x
And reality is in South Africa we often have over 2% difference in fees especially in the retirement annuity space. Then you also tac on the advisor fee that normally falls in the range of 0.5% to 1.5%, some providers have platform fees as well. So the fee grows allot.
Even between active managers morning star ran a test and fee's was the biggest predictor of returns in funds. https://www.morningstar.co.uk/uk/news/149421/how-fund-fees-are-the-best-predictor-of-returns.aspx