How much do investment fees actually matter in Ireland?
A 0.75% fee on a €500/month investment over 30 years at 7% growth can cost over €150,000 — roughly 25% of your potential returns. Even 0.25% can make a six-figure difference over a lifetime of investing.
What is a good OCF for Irish investors?
Passive index funds typically charge 0.05% to 0.25%. Active funds charge 0.5-1.5% but rarely outperform after fees. For Irish-domiciled ETFs, OCFs range from 0.05% to 0.75%.
Does this calculator include platform fees?
The annual fee input represents the total ongoing charge. Most Irish platforms charge 0.25-0.75% in addition to fund fees. Add both together for a complete picture of your total costs.
How do fees affect Irish ETF investments?
Irish ETFs already face 41% exit tax and deemed disposal every 8 years. Adding high management fees on top significantly reduces net returns. A low-cost ETF with 0.1% OCF is strongly preferable to a 0.75% active fund.
What is the impact of 1% fees over 30 years?
A 1% fee on a €10,000 lump sum with €500/month contributions over 30 years at 7% growth reduces your final pot by approximately €150,000 — roughly 25% of the fee-free value.
Should I switch to a cheaper fund in Ireland?
If you are comparing two funds tracking the same index, the cheaper one is almost always better. Switching may trigger CGT — check if the gain exceeds the €1,270 annual exemption.
Investment fee impact calculator Ireland 2026
Irish investors face higher fund costs than UK investors due to a smaller market. Compare fund OCFs carefully. A difference of 0.5% can cost tens of thousands over a 20-year period.
How do fees compare between ETFs and unit trusts?
ETFs typically have lower OCFs (0.05-0.25%) than Irish-domiciled unit trusts (0.5-1.5%). However, ETFs are subject to 41% exit tax while some unit trusts qualify for 33% CGT treatment.
What is the effect of compounding fees?
Fees compound just like returns. You pay fees on top of fees each year. This is why a 1% fee difference over 30 years can mean hundreds of thousands in lost growth.
How do fees in Irish pensions compare?
Irish pension fees typically range from 0.5-1.5% annually. Executive pensions and PRSAs often have higher fees. Use this calculator with your pension fee rate to see the long-term impact.
What fees should I look for in an Irish investment fund?
Look for Total Expense Ratio (TER) under 0.5% for passive funds. Active funds should justify higher fees with consistent outperformance, which is rare. Also check for exit fees and switching fees.
How do annual management fees differ from OCF?
Annual Management Charge (AMC) is typically 0.5-1% of fund value. OCF includes AMC plus other expenses. The OCF is the true total cost. Use OCF in this calculator for accuracy.