Why long-term investment fees matter

Short answer #

Annual fees reduce not only this year’s gain but also the capital that can compound later. Over long periods, a small fee gap can therefore create a large difference in ending value.

Important variables #

• Ongoing percentage cost
• One-off buying and selling cost
• Gross return
• Term and contribution

Worked example #

€100,000 over 25 years grows much more at 6% than 5% even though only one point is missing. The gap compounds every year.

Break-even: What changes the result? #

The longer the horizon and larger the capital, the larger the absolute fee effect. One-off cost matters especially over short holding periods.

Common mistakes #

• Deducting the fee only once
• Using gross as net return
• Counting tax and fees twice

Sources & assumptions

• European Central Bank — Nominal and real interest rates (2026-08-17)
• RATIOXA — Methodology and formulas (2026-08-17)