# Growth managed fund fees

**URL:** <https://community.investengine.com/t/growth-managed-fund-fees/708>\
**Category:** General\
**Created:** [29 November 2022 19:57 UTC](https://community.investengine.com/t/growth-managed-fund-fees/708 "2022-11-29T19:57:20Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![Danipaolo](https://avatars.discourse-cdn.com/v4/letter/d/ba9def/32.png) [@Danipaolo](https://community.investengine.com/u/Danipaolo)\
**Post date:** [29 November 2022 19:57 UTC](https://community.investengine.com/t/growth-managed-fund-fees/708/1 "2022-11-29T19:57:20Z")

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Hi there

I have a question around fees for the growth managed fund. I gather there is a 0.25% annual management fee, but what else can expect to pay?

Any help would be great

Thanks

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**Author:** ![tom.winterton](https://dub1.discourse-cdn.com/flex017/user_avatar/community.investengine.com/tom.winterton/32/8_2.png) [@tom.winterton](https://community.investengine.com/u/tom.winterton)\
**Post date:** [30 November 2022 12:52 UTC](https://community.investengine.com/t/growth-managed-fund-fees/708/2 "2022-11-30T12:52:32Z")

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Hi @Danipaolo,

There are three different type of costs and charges. I’ve tried to summaries them below - they’re also listed on the Managed tab on InvestEngine’s cost page - [https://investengine.com/costs/](https://investengine.com/costs/)

- **InvestEngine’s Management fee** - 0.25% Annual management fee on the managed portfolios
- **Fund Expense Ratio** - Each of the ETFs in the portfolio also has charges and costs. These are shown as a Total Expense Ratio (TER %). These vary by fund but average ~0.16% for InvestEngine’s Growth managed portfolio. (You won’t see this charge as it deduced directly from the fund)
- **Transaction cost** - The cost associated with buying each ETF. This is the market spread (difference between the buy & the sell price of the fund in the market). Again this varies by ETF but will average ~0.07% annually

You will only see InvestEngine’s Management fee deduced from your account but both the fund charges & the transaction costs will both reduce your portfolio’s performance. These charge will also vary over time, so the figures above will the historic charges.

Hope that makes sense

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**Author:** ![Danipaolo](https://avatars.discourse-cdn.com/v4/letter/d/ba9def/32.png) [@Danipaolo](https://community.investengine.com/u/Danipaolo)\
**Post date:** [30 November 2022 14:26 UTC](https://community.investengine.com/t/growth-managed-fund-fees/708/3 "2022-11-30T14:26:08Z")

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Hi @tom.winterton

Thanks for your response. Does this mean that when you consider the annual managed fee plus the TER of each ETF, the combined fee will be around 3.29%?

This seems pretty high, but perhaps i’ve miscalculated.

For e.g. the Growth 10 portfolio.

Thanks

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**Author:** ![tom.winterton](https://dub1.discourse-cdn.com/flex017/user_avatar/community.investengine.com/tom.winterton/32/8_2.png) [@tom.winterton](https://community.investengine.com/u/tom.winterton)\
**Post date:** [30 November 2022 14:46 UTC](https://community.investengine.com/t/growth-managed-fund-fees/708/4 "2022-11-30T14:46:26Z")

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Hi @Danipaolo - No, you only pay the TER% on the £ assets in each ETF.

So the sum of you costs and charges would be more like ~0.48% (0.25% management fee, 0.16% average TER % + 0.07% average Transaction costs).

These charges will vary slightly year to year and with different portfolios, TER % & Transaction costs are external costs which InvestEngine doesn’t set. Obviously do your own research but I think I can say ETFs are typically regarded as one of the lowest costs ways of Investing.

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**Author:** ![Danipaolo](https://avatars.discourse-cdn.com/v4/letter/d/ba9def/32.png) [@Danipaolo](https://community.investengine.com/u/Danipaolo)\
**Post date:** [30 November 2022 17:01 UTC](https://community.investengine.com/t/growth-managed-fund-fees/708/5 "2022-11-30T17:01:59Z")

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Thanks @tom.winterton  
That seems more sensible, thanks for clarifying. I’m about to begin investing in either one of the managed funds or a DIY portfolio.

Either way your overall fees are highly competitive.

Thank again