Iggy’s Journal: Fund Fees Explained: Why a Small Yearly Percentage Can Take a Big Share of Your Returns

The Investing Iguana

Iggy’s Journal: Fund Fees Explained: Why a Small Yearly Percentage Can Take a Big Share of Your Returns

Wednesday 28 Oct 2026 | Midday

The Numbers

A fund can charge an expense ratio of 1.5% a year whether it gains or loses.

An illustration from the episode: a S$100,000 fund earns 6% a year before costs. A 1.5% expense ratio leaves 4.5% a year. A fund costing 0.3% leaves 5.7% a year. The comparison runs for 25 years.

For CPF money, the CPF Board set the sales charge cap on new CPF Investment Scheme purchases at 0% from 1 October 2020.

My Personal Take

The expense ratio is the one number in a fund that is printed before anything happens, and it is charged in good years and bad. How far apart do 4.5% and 5.7% a year end up on S$100,000 after 25 years? And what did the 2020 change to CPF Investment Scheme charges leave in place? The episode works through the sums step by step.

📺 YouTube: https://youtu.be/OxSSPTTZAe4

Cheers, Iggy 🦖

Not financial advice. Iggy’s Forensic Compliance Standards apply.

Sources: CPF Board: Reduction of CPF Investment Scheme fees deferred to 1 October 2020

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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A 1.5% expense ratio leaves 4.5% a year. A fund costing 0.3% leaves 5.7% a year. The comparison runs for 25 years.</p>\n<p>For CPF money, the CPF Board set the sales charge cap on new CPF Investment Scheme purchases at 0% from 1 October 2020.</p>\n<p>My Personal Take</p>\n<p>The expense ratio is the one number in a fund that is printed before anything happens, and it is charged in good years and bad. How far apart do 4.5% and 5.7% a year end up on S$100,000 after 25 years? And what did the 2020 change to CPF Investment Scheme charges leave in place? The episode works through the sums step by step.</p>\n<p>📺 YouTube: https://youtu.be/OxSSPTTZAe4</p>\n<p>Cheers, Iggy 🦖</p>\n<p>Not financial advice. Iggy’s Forensic Compliance Standards apply.</p>\n<p>Sources: CPF Board: Reduction of CPF Investment Scheme fees deferred to 1 October 2020</p></body></html>","htmlText":"<html><head></head><body><p><strong>Iggy’s Journal: Fund Fees Explained: Why a Small Yearly Percentage Can Take a Big Share of Your Returns</strong></p>\n<p></p>\n<p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/18c7d0be62d443dc7f1be050f7d8f0c9\" tg-width=\"1536\" tg-height=\"2752\"></p>\n<p>Wednesday 28 Oct 2026 | Midday</p>\n<p>The Numbers</p>\n<p>A fund can charge an expense ratio of 1.5% a year whether it gains or loses.</p>\n<p>An illustration from the episode: a S$100,000 fund earns 6% a year before costs. A 1.5% expense ratio leaves 4.5% a year. A fund costing 0.3% leaves 5.7% a year. The comparison runs for 25 years.</p>\n<p>For CPF money, the CPF Board set the sales charge cap on new CPF Investment Scheme purchases at 0% from 1 October 2020.</p>\n<p>My Personal Take</p>\n<p>The expense ratio is the one number in a fund that is printed before anything happens, and it is charged in good years and bad. How far apart do 4.5% and 5.7% a year end up on S$100,000 after 25 years? And what did the 2020 change to CPF Investment Scheme charges leave in place? The episode works through the sums step by step.</p>\n<p>📺 YouTube: https://youtu.be/OxSSPTTZAe4</p>\n<p>Cheers, Iggy 🦖</p>\n<p>Not financial advice. Iggy’s Forensic Compliance Standards apply.</p>\n<p>Sources: CPF Board: Reduction of CPF Investment Scheme fees deferred to 1 October 2020</p></body></html>","text":"Iggy’s Journal: Fund Fees Explained: Why a Small Yearly Percentage Can Take a Big Share of Your Returns Wednesday 28 Oct 2026 | Midday The Numbers A fund can charge an expense ratio of 1.5% a year whether it gains or loses. An illustration from the episode: a S$100,000 fund earns 6% a year before costs. A 1.5% expense ratio leaves 4.5% a year. A fund costing 0.3% leaves 5.7% a year. The comparison runs for 25 years. For CPF money, the CPF Board set the sales charge cap on new CPF Investment Scheme purchases at 0% from 1 October 2020. My Personal Take The expense ratio is the one number in a fund that is printed before anything happens, and it is charged in good years and bad. How far apart do 4.5% and 5.7% a year end up on S$100,000 after 25 years? And what did the 2020 change to CPF Investment Scheme charges leave in place? The episode works through the sums step by step. 📺 YouTube: https://youtu.be/OxSSPTTZAe4 Cheers, Iggy 🦖 Not financial advice. Iggy’s Forensic Compliance Standards apply. 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