Investing

Fees

Investment fees reduce the return that stays with you. Small annual percentages can add up over long periods.

4 min

Investing 101 • 09

Investment fees come out of your return.

The more you pay in costs, the less of the investment result stays in your account.

Fees can appear in different places.

Funds may have ongoing expenses, accounts may have charges, and some transactions or advice can have separate costs.

Common costs can include

01Management expense ratios02Trading commissions03Account or administration fees04Advisory fees05Sales charges on some products

A fee and a loss are different, but both reduce your ending value.

01

Market loss

The investment itself fell in value.

02

Fee

A cost charged for the product, account, transaction or service.

A small percentage can still be real money.

Portfolio$100,000
Annual fee1%
Approximate first-year cost$1,000
Long termCosts can compound too

Cheapest is not automatically best.

The point is to know what you are paying, what you receive for it and whether the cost fits the product or service.

Before investing, ask

01What does this investment cost each year?02Are there trading or account fees?03Are fees already deducted from reported returns?04What service am I receiving for the cost?

Remember this

Fees are one of the parts of investing you can actually see and compare.

A percentage that looks small each year can matter a lot over time.

Lesson complete

Reviewed 2026-08-18

Sources

Ontario Securities Commission, GetSmarterAboutMoneyMutual fund fees ↗Ontario Securities Commission, GetSmarterAboutMoneyMutual Fund Fee Calculator ↗
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