What do investing fees actually cost you?
Fees are usually shown as small percentages, which makes them easy to skim past. Turned into dollars, they're much easier to see. Here's what each kind of fee is, and what it can add up to.
The short answer
Most investing costs fall into three groups: fund fees (a yearly percentage taken from a fund's value), transaction fees (charged when you buy or sell), and currency fees (charged when your NZ dollars are converted to buy overseas investments). Some platforms also charge a monthly subscription, instead of or as well as per-trade fees.
A percentage that looks tiny becomes real money over time. On $10,000, a 1% yearly fee is $100 a year, and because it comes out of your balance every year, the total keeps adding up.
What are the main investing fees?
| Fee | What it is | Where to find it |
|---|---|---|
| Fund fee | A yearly percentage of what you have in a fund. It comes out of the fund's value, so you never get a bill. Also called a management fee or total annual fund charge. | The fund's disclosure statement or quarterly fund update |
| Performance fee | An extra fee some actively managed funds charge when they beat a target. | The fund's disclosure statement |
| Transaction fee | Charged each time you buy or sell: a percentage, a flat amount, or a percentage with a cap. | Your platform's pricing page |
| Currency fee | A percentage taken when NZ dollars are converted to buy overseas investments, and again when converted back. | Your platform's pricing page |
| Subscription | A monthly or yearly plan, sometimes instead of per-trade fees. | Your platform's pricing page |
| Buy/sell spread | The gap between the price to buy and the price to sell at the same moment. | The exchange, or the fund's disclosure statement |
What do fees cost in dollars?
Here's a $5,000 portfolio split across two funds, with the yearly fund fees turned into dollars.
Illustrative fee rates, not any particular fund's or platform's
Yearly fund fees
- $3,500 in an index fund at 0.25% a year$8.75
- $1,500 in an actively managed fund at 1.00% a year$15.00
- Total, about 0.48% of $5,000$23.75 a year
Fees when money moves
- Adding $50 a week, at 0.5% per trade$13 a year
- Converting $1,000 to US dollars, at 0.5%$5
- A $1 flat fee on a $20 purchase5% of it
Notice the last line: a flat fee that's trivial on a large purchase can be a big share of a small one. That's why fees matter most when amounts are small or trades are frequent.
Why do small percentages add up?
Because a yearly fee is taken every year, from whatever is left. Here's $10,000 left alone for 20 years. To show the fee on its own, we've left out any gains or losses.
$10,000 over 20 years, fees only, no gains or losses. Illustrative
| Yearly fee | Left after 20 years | Paid in fees |
|---|---|---|
| 0.25% | $9,512 | $488 |
| 1.00% | $8,179 | $1,821 |
Each year's fee is a percentage of the balance at the time. If a balance grows, the fee is taken from a bigger number, so the dollar amount grows with it.
Is a cheaper fund always better?
Not automatically. A higher fee pays for something, such as active management or extra services, and some people decide that's worth it to them. Comparing fees only makes sense between funds that do similar things. The point is to know what you're paying, in dollars, and what you're getting for it.
How do I find out what I'm paying?
- Check each fund's fees. For NZ funds, including KiwiSaver, the quarterly fund update shows the total annual fund charges. You can look funds up on Sorted's Smart Investor.
- Check your platform's pricing page. Transaction, currency and subscription fees are listed there. Sharesies, for example, publishes its fees on its Pricing and plans page.
- Turn percentages into dollars. Multiply what you have in each fund by its yearly fee, and what you invest each year by the per-trade and currency fees.
Common questions
What does Sharesies charge?
Sharesies publishes its current fees and plans on its Pricing and plans page. Platform fees change from time to time, so it's best to check there rather than rely on a figure in an article, including this one. Funds you buy through any platform also charge their own fund fees.
What is a management fee?
A management fee is the yearly percentage a fund charges to run it, taken out of the fund's value rather than billed to you. In New Zealand fund updates it's usually shown as part of the “total annual fund charges”.
Do KiwiSaver funds charge fees?
Yes. Every KiwiSaver fund has fund charges, shown in its quarterly fund update, and some schemes also charge a fixed yearly fee. You can compare KiwiSaver funds' fees on Sorted's Smart Investor.
Are fees taken from my balance or charged separately?
It depends on the fee. Fund fees come out of the fund's value, so you see them as slightly lower returns rather than a bill. Transaction and currency fees are taken when you buy, sell or convert. Subscriptions are usually charged to your account or card.
What is a buy/sell spread?
It's the difference between the price you'd pay to buy and the price you'd get to sell at the same moment. On a stock exchange it's the gap between the best buy and sell offers; some managed funds set a small spread to cover their own trading costs.
General information, not financial advice. This page explains how investing works in general. It doesn't take your situation, goals or attitude to risk into account, and it isn't a recommendation to buy, sell or hold anything. Investing involves risk: the value of your investments can go down as well as up, and you could get back less than you put in. Figures are from the sources below on the dates shown, and may have changed since.
Sources
- Sorted, Smart Investor: fees and fund updates for NZ funds, including KiwiSaver. Checked 20 October 2026.
- Sorted, Shares guide: Te Ara Ahunga Ora Retirement Commission on how fees eat into returns.
- Sharesies, Pricing and plans: one platform's published fees. Checked 20 October 2026.
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