{"id":603,"date":"2019-08-16T18:00:54","date_gmt":"2019-08-16T10:00:54","guid":{"rendered":"https:\/\/www.syfe.com\/magazine\/?p=603"},"modified":"2020-02-11T15:55:50","modified_gmt":"2020-02-11T07:55:50","slug":"are-unit-trusts-worth-their-cost","status":"publish","type":"post","link":"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/","title":{"rendered":"Are Unit Trusts Worth Their Cost?"},"content":{"rendered":"\n<p><strong>\u201cWhen <\/strong><strong>trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients.\u201d<\/strong><\/p>\n\n\n\n<p>So said Warren Buffet in his annual letter to Berkshire Hathaway shareholders in 2017. Warren Buffet, whose stock picks made him billions, followed up by advocating for low-cost passively managed index funds, delivering quite the black eye to active investment managers who have often <a href=\"https:\/\/www.cnbc.com\/2019\/03\/15\/active-fund-managers-trail-the-sp-500-for-the-ninth-year-in-a-row-in-triumph-for-indexing.html\">underperformed their benchmarks<\/a>.<\/p>\n\n\n\n<p>Time and again, investment fees have proven to be one of the key determinants of long-term investment returns, as Warren Buffet rightly pointed out. High fees (such as those associated with unit trusts) don\u2019t always translate to higher returns, but paying less in fees is a sure-fire way to boost your returns over the long term.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Here is your ultimate cheat sheet to figure out what you are really paying for when you invest in a unit trust.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"604\" data-permalink=\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/how-much-are-you-really-paying-for-that-unit-trust_syfe\/\" data-orig-file=\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/08\/How-much-are-you-really-paying-for-that-unit-trust_Syfe.png\" data-orig-size=\"800,2000\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"How-much-are-you-really-paying-for-that-unit-trust_Syfe\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/08\/How-much-are-you-really-paying-for-that-unit-trust_Syfe.png\" data-large-file=\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/08\/How-much-are-you-really-paying-for-that-unit-trust_Syfe.png\" src=\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/08\/How-much-are-you-really-paying-for-that-unit-trust_Syfe.png\" alt=\"\" class=\"wp-image-604\" width=\"800\" height=\"2000\"\/><\/figure><\/div>\n\n\n\n<p>While all investments have costs, an investment with higher cost does not mean better performance. <\/p>\n\n\n\n<p>The bottom line is: You cannot control the direction of the market, but you can control how much you pay in fees. Syfe helps you invest in a<a href=\"https:\/\/www.syfe.com\/sample-portfolio\"> globally diversified, low-cost portfolio <\/a>of Exchange-traded Funds (ETF) and fees start from <a href=\"https:\/\/www.syfe.com\/pricing\">as low as 0.4% per annum<\/a>. <\/p>\n\n\n\n<p>Start keeping more of your returns today. Find the right low-cost portfolio for you <a href=\"https:\/\/www.syfe.com\/basic-risk-analyser\/intro\">here<\/a>.  <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.syfe.com\/risk-analyser\"><img decoding=\"async\" src=\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2020\/02\/sq-banner-grow-wealth.png\" alt=\"\" class=\"wp-image-1343\"\/><\/a><\/figure><\/div>\n\n\n\n<p><br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>High fees don\u2019t always translate to higher returns. <\/p>\n","protected":false},"author":3,"featured_media":606,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16],"tags":[],"class_list":{"0":"post-603","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-grow-wealth"},"acf":{"readingTime":null,"authorName":null,"authorThumbnail":null,"BLUE_TIER":null,"BLACK_TIER":null,"GOLD_TIER":null,"PRIVATE_WEALTH_TIER":null,"PRE_AML":null,"POST_AML":null,"NO_GLOBAL_PORTFOLIO":null,"NO_REITS_PORTFOLIO":null,"NO_EQUITY_PORTFOLIO":null,"NO_CASH_PORTFOLIO":null,"HAS_ADVISOR":null,"INVESTMENT_PORTFOLIO_AUM":null,"AFTER_AML_DATE":null,"AFTER_ACCOUNT_CREATED_DATE":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Are Unit Trusts Worth Their Cost?<\/title>\n<meta name=\"description\" content=\"A unit trust with high fees must perform better than a lower cost investment just to generate the same returns for you. In fact, a 1% fee difference between two portfolios can have a substantial impact on your investment returns over time.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Unit Trusts Worth Their Cost?\" \/>\n<meta property=\"og:description\" content=\"High fees don\u2019t always translate to higher returns.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/\" \/>\n<meta property=\"og:site_name\" content=\"Connect\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-16T10:00:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-11T07:55:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/08\/Unit-trust-cost-958x1024.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"958\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Syfe Singapore\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Syfe Singapore\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/\"},\"author\":{\"name\":\"Syfe Singapore\",\"@id\":\"https:\/\/www.syfe.com\/magazine\/#\/schema\/person\/8d955bc4210538fdf152e7e66c4b943c\"},\"headline\":\"Are Unit Trusts Worth Their Cost?\",\"datePublished\":\"2019-08-16T10:00:54+00:00\",\"dateModified\":\"2020-02-11T07:55:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/\"},\"wordCount\":234,\"publisher\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/08\/Unit-trust-cost.jpg\",\"articleSection\":[\"Grow Wealth\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/\",\"url\":\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/\",\"name\":\"Are Unit Trusts Worth Their Cost?\",\"isPartOf\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.syfe.com\/magazine\/are-unit-trusts-worth-their-cost\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.syfe.com\/magazine\/wp-content\/uploads\/2019\/08\/Unit-trust-cost.jpg\",\"datePublished\":\"2019-08-16T10:00:54+00:00\",\"dateModified\":\"2020-02-11T07:55:50+00:00\",\"description\":\"A unit trust with high fees must perform better than a lower cost investment just to generate the same returns for you. 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