What fees am I paying on my investments?
- Nic Round: Chartered Wealth Manager
- Feb 13
- 3 min read
Updated: 1 day ago
What fees am I paying on my investments?
In the UK, investment costs are often layered. You may not see a single obvious charge, but several different fees working together. Understanding what you are paying — and what you are receiving in return, can bring clarity.
Behind this question are often quiet concerns:
Am I paying more than I realise?
Are percentage fees adding up?
Is this normal?
Does cost affect long-term returns?
Clarity begins with understanding how charges are structured.
The three main types of investment fees
Most investment arrangements involve a combination of the following:
1. Adviser fees
If you use a financial adviser, you may pay:
An initial advice fee
An ongoing annual fee (often 0.5% to 1%)
For example:
£600,000 portfolio
0.75% annual adviser fee
£4,500 per year
This fee typically covers planning, reviews, suitability assessments and decision support.
2. Platform or provider fees
If your investments sit on an investment platform, there is usually a platform charge.
This might range from around 0.2% to 0.4% annually, depending on provider and asset level.
Using the same example:
£600,000 portfolio
0.25% platform fee
£1,500 per year
Platform fees cover administration, custody and reporting.
3. Fund management charges
Each investment fund carries its own internal charge.
This is known as the ongoing charges figure (OCF).
Actively managed funds often charge more than passive funds.
For example:
0.6% fund cost on £600,000
£3,600 per year
These costs are deducted within the fund and are not usually invoiced separately.
How fees add up
Using the example above:
Adviser fee: £4,500
Platform fee: £1,500
Fund costs: £3,600
Total annual cost: £9,600
That equates to 1.6% of the portfolio.
When expressed in percentages, fees can feel abstract.
When expressed in pounds, they feel more tangible.
Why fees matter over time
Even small differences in percentage charges can compound over long periods.
For example:
A 1% difference on £500,000
Over 20 years
May represent a significant cumulative impact
But cost should not be assessed in isolation.
Value matters too.
What those fees are meant to deliver
Investment fees may reflect:
Strategic asset allocation
Tax efficiency planning
Behavioural coaching during downturns
Portfolio rebalancing
Retirement modelling
Ongoing reviews
The real question is not only:
“How much am I paying?”
But:
“What support and structure does this provide?”
The behavioural layer
This question often arises when:
Markets fall and fees feel heavier
Statements seem unclear
Communication feels limited
Costs have never been fully explained
Uncertainty about cost can create disproportionate anxiety.
Clarity often reduces that tension.
A more useful question
Instead of asking only:
What fees am I paying on my investments?
A more grounded question might be:
Do I clearly understand the total annual cost in pounds, and does the service justify it?
That moves the focus from cost alone to value and alignment.
Some of the most common practical questions people ask about investment fees are below.
How do I find out what fees I’m paying?
Investment statements and annual cost disclosures should outline adviser, platform and fund charges.
Is 1% a high investment fee?
It depends on what is included. Total cost must be considered across all layers of charges.
Do passive funds cost less than active funds?
Passive funds generally have lower internal charges than actively managed funds.
Can I reduce investment fees?
In some cases, adjusting fund selection or platform choice may reduce costs, but suitability should come first.
A calm place to think first
If you are unsure what you are paying, there is rarely a need for immediate change.
Often the first step is to:
Calculate the total annual cost in pounds
Understand what service is included
Clarify whether the structure fits your needs
Evoa exists to provide that quiet thinking space — before advice, before action.
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