South Africans pay some of the highest investment fees in the world — often without, 2–3% per year when you add platform fees, advisor fees, and active fund charges. We wanted to show exactly what that costs in rands and cents.

Scenario: R1 million lump sum invested for 30 years at 10% gross return

• 0.3% total fee (low-cost ETF) → ends with R8.23 million
• 1.2% total fee (typical balanced unit trust) → ends with R6.41 million
• 2.2% total fee (advisor + platform + active funds) → ends with R4.66 million

Difference between cheapest and most expensive: R3.57 million — more than three times the original investment — lost to fees alone.

A 1% higher fee over 30 years reduces your final capital by roughly 35–40%. That’s not “a small price for advice” — that’s the difference between retiring comfortably and working until 70.

Where the fees hide in South Africa

Regulation 28 funds often charge 0.8–1.5% even when 70% of the portfolio is in the same low-cost ETFs you can buy yourself for 0.25%. Many financial advisors still take 1% upfront + 1% ongoing despite the arrival of fee-based advice and robo-advisors.

The evidence is clear: the lower your total fee, the more you keep. And today in South Africa you can build a globally diversified portfolio for under 0.4% — no advisor required.