Why Investment Costs Matter
The investment fees you pay have a significant impact on the success of your long-term investment performance.
Many investment products contain embedded fees and commissions. These costs are expressed in a management expense ratio
or MER. Many investors are not aware of this substantial, on-going expense because it is charged directly to the assets of a
If a mutual fund has an MER of 2.50%, then the fund manager is withdrawing 2.50% of the value of the fund's assets to cover the
various costs of managing, administering, and marketing the fund. The MER represents the annual rate at which your investment
assets are declining, before any return is produced by the fund.
Your Compounding Benefit of Lower Fees
In a tax sheltered account, a $750,000 investment portfolio returning 8% annually over 15 years produces:
$1,674,357 with a 2.50% Mutual Fund MER
$1,997,926 with a 1.25% Index Wealth Management Inc. portfolio management fee.
Therefore, reducing just the investment costs you pay from 2.50% to 1.25%, results in you receiving an additional $323,569 with
the identical return and time horizon.
Any money you pay for investment fees and costs is money that will not be available to compound for your benefit. Understanding
and reducing your investing costs should always be a critical factor in your investment decision making process.
Our fee schedule aligns our interests with yours by:
Our fee covers portfolio management and most custodial services. Fees are based on the quarter ending market value of assets
under management and are calculated and billed quarterly in arrears.
Apply our independent advice and professional judgement to your wealth, without any compensation conflicts.
Ensure that you understand your investment costs.
Benefit by paying a low, transparent management fee that is based on the market value of your investment assets managed on
Contact Us: Winnipeg: 1.855.989.6200 / Calgary: 1.855.804.3582 / Vancouver: 1.604.609.6177