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So, what are the fees?

time 4mths ago
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By · 10 Jan 2021
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Mitch Datson
By ·
10 Jan 2021
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time 4mths ago

Question

Dear InvestSmart, I am planning to open an account with the initial deposit of AUD 10000/- and would like to go with a portfolio with Growth option (InvestSMART High Growth Portfolio INV004) with a horizon of 5 years. I would also put in a regular monthly controbution of around AUD 200 (monthly) to save and grow my investments. While I understand that you have a fee of AUD 99 per annum for investments between AUD 10000/- to AUD 18000/-, I want to clarify the following: 1 - Is there any Establishment fee (i.e., fee to open the investment account) 2 - Is there any Contribution fee (i.e., fee on each amount contributed to the investment - either for the initial amount or for the monthly systematic investments) 3 - Any other Management fees and costs (i.e., Any other management fees or costs other than AUD 99 per annum) which might be deducted from my account balance 4 - Is there any Performance Fee? 5 - Is there any adviser service fee? I would appreciate responses to the above questions as that will enable me to decide on opening investment account with InvestSmart. Best Regards, Indradeb - Submitted by Indradeb

Answer

The InvestSMART range of diversified managed portfolios offers capped-fees.

No establishment fee, no contribution fee, no performance or service fee.

For indirect fees (charged within the ETFs) please read this area:

What are the fees to invest? | InvestSMART Help Centre

How capped fees work?

Our capped management fees are tiered depending on your investment amount. The fees start at just $99 p.a. and are capped at $451 p.a. for any investments over $82,000*.

Check out this interactive slider.

There are no withdrawal fees.

However, remember that you will incur brokerage when we have to trade (buy or sell) holdings. We make trades for these reasons:

  • Creating your portfolio and buying holdings
  • Adding funds to your account and buying holdings
  • When rebalancing your portfolio, so it stays in line with the portfolio objectives. Rebalancing may involve the buying of some holdings and the selling of others.
  • You are withdrawing funds from your account and selling holdings to free up cash for the withdrawal.
  • Closing your portfolio and selling all holdings

We've negotiated low brokerage. It's the greater of $5.50 per trade or 0.11% of the trades' value to buy (or sell) the securities within your portfolio. There are up to seven holdings in each portfolio. You can see each portfolio's holdings by going to Key Facts > Allocations > Current Holdings on each of the portfolio's product pages.

The Product Disclosure Statement is important and will list the fees for your investment. You should always read the PDS for any investment you are considering. You can find the PDSon on each portfolio page.

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