The lowest fees in Switzerland

Anybody considering wealth management will look first at the fees charged for a mandate. That’s because low wealth management fees naturally also mean higher returns for clients. To make this choice easier, independent online comparison service moneyland.ch took a close look at a range of providers. The study, which was published in November, reveals quite significant differences between the fees. But in each category assessed, True Wealth offers the lowest fees in Switzerland, regardless of the client’s risk profile and the amount invested.

The following table shows a comparison of the annual fees charged for an investment amount of CHF 250,000. The fees vary depending on the risk strategy. All the data and comparisons can be found at moneyland.ch.

Regardless of strategy and volume

The study indicates that the higher the risk, the more expensive wealth management mandates become.  So those who prefer a portfolio focused on risky products will pay significantly more at many providers. But that’s not the case with True Wealth, where the fees do not depend on the risk profile. That’s why True Wealth has the lowest fees for every risk strategy surveyed, according to the study. The amount invested can also influence the fees significantly, as many providers scale their fees depending on the investment amount as well as the risk. Thanks to fixed management fees (0.5% of the amount invested), True Wealth offers the lowest fees for all the investment amounts in the study.

Transparent fees

In addition to volume and strategy, other factors can influence fees. According to NZZ (German only), not all of these were considered in the study. For example, transaction costs may also be charged. At True Wealth, the calculation is simple: we cover the transaction costs. For our services, clients pay an annual management fee of 0.5% of the amount invested. We also keep the product costs as low as possible and display them interactively for each portfolio. This enables a transparent, cost-efficient product for our clients.

Update: 18 August 2017

Moneyland published a new comparison of the fees charged by digital wealth managers (Swiss Robo Advisors Compared): True Wealth is again the lowest cost provider in Switzerland.

Update: 5 August 2020

Moneyland published a new comparison of the fees charged by digital wealth managers in 2020 (Grosse Kostenunterschiede in der Schweizer Vermögensverwaltung - German Only): once again, True Wealth is the lowest cost provider in Switzerland (tabular overview).

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