Management fees are a common part of KiwiSaver and investment funds, typically as a percentage of the invested amount and they cover investing costs. Comparing fees among providers ensures better value for investors.
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“I can see that Sharesies now has an option for KiwiSaver. Upon looking, I see there is something called a management fund which is 0.51%. Is this normal to have a management fund as a %? Or is this just on Sharesies and not done on my ASB scheme?”
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Management fees in investment and KiwiSaver funds are common. They are usually expressed as a percentage of your invested money. Sharesies, for example, charge a management fee of 0.51%, which means they take 0.51% of your total KiwiSaver fund value each year to cover the cost of managing and making investment decisions for your fund.
Other KiwiSaver providers, like ASB, may also charge management fees, but the percentage can vary. To find out if ASB or your current KiwiSaver scheme charges a management fee and what that fee is, you should check the documents they provide you, like the product disclosure statement or terms and conditions. This information helps you understand the costs associated with your KiwiSaver investments.
In simple terms, these fees are a common part of KiwiSaver and investing, and it’s a good idea to compare them between different providers to make sure you’re getting the best value for your money.
To find the most suitable KiwiSaver provider, I recommend consulting a financial advisor. They often provide free services that can help you find the best KiwiSaver provider and fund suitable for your needs.
It’s worth noting that while financial advisors’ services are usually free, they receive compensation from a range of KiwiSaver providers. This compensation model allows them to provide valuable, unbiased advice and information to their users without charging them directly.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
