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Glossary

Ongoing costs

Ongoing costs are the charges deducted from a fund's assets every year to cover management, administration, the depositary and other running expenses. Their effect compounds over time.

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Short answerOngoing costs are the charges deducted from a fund's assets every year to cover management, administration, the depositary and other running expenses. Their effect compounds over time.

Ongoing costs are the charges deducted from a fund's assets each year to cover management, administration, the depositary and other running expenses.

Why it matters

Because ongoing costs are taken every year, their effect compounds over the holding period. For a long-term product such as an ELTIF, even a small difference in yearly costs can noticeably change what an investor receives at the end. The KID shows costs in a standard format, which makes comparison easier.

What to watch for

Ongoing costs are not the only charge. Check entry and exit fees, performance fees and transaction costs, and keep in mind that real estate funds may also bear property-level costs. Read the cost sections of the KID and the prospectus together. You can model the effect with the fee calculator. See also ELTIF fees explained.

Primary sources

General information. Not investment advice or a suitability assessment.

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