Feb 16 โ€ข 17:35 UTC ๐Ÿ‡ธ๐Ÿ‡ช Sweden SVT Nyheter

Fund fees can cost hundreds of thousands of kronor unnecessarily

A comparison by the Swedish Financial Supervisory Authority reveals that higher fees for actively managed funds can lead to significantly larger costs over time compared to index funds.

A recent analysis by Finansinspektionen highlights the financial impact of differing fund management fees on long-term savings. The study found that saving 2,000 kronor a month in an actively managed fund with a 1.3% annual fee can result in a difference of several hundred thousand kronor after 30 years compared to investing in a low-cost index fund with only a 0.2% fee. Specifically, around a 1 percentage point difference in fees can cost investors approximately 250,000 kronor over the long term. Joel Dahlberg, an economist and journalist, emphasized that unlike other industries where higher prices are typically associated with higher quality, the opposite is often true in the fund industry, where expensive actively managed funds tend to underperform compared to cheaper index options.

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