Case Study: Selma’s fee compared.
A practical price example.

Example with CHF 10'000

Occasionally we get asked by our users to compare Selma’s fee with a classical offer from a Swiss bank. We got curious and took a closer look at a fund offer from a well-known Swiss bank.

 
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Selma is three times cheaper

 

The listed costs are not estimates, but real numbers found on bank's web page and in its fund prospects. Out of pure courtesy, we will not publish this bank's name. 😉

A. Selma B. Example mutual fund
Investment amountCHF 10'000CHF 10'000
Annual management fee0.72% (max)0.6% (cheapest fund) - 1.23 % (most expensive fund)
Product's own costs0.22% (average)0%
Transaction fee0%Be aware of the small print: Transaction fees not included
Asset based fee0%1%
Exit Fee0%Specific information missing - read the contract carefully!
Swiss stamp dutyinclusiveca. 0.15%
Swiss tax statementinclusiveCHF 10 per fund, min. CHF 25 + VAT
Deposit costs0%Minimum CHF 90 / year
Total costs (per year)CHF 94 (0.94%)CHF 290 - 353 / year (ca. 2.9% - 3.53% in the first year)

 

What does that mean in practice?

Let's assume you would earn a stable return of 5% on your initial CHF 10'000 investment every year. After 15 years, in 2032, once robots have taken over the world and Elon Musk has built a Hyperloop from NY to Paris, this is where you stand: 

A. Selma B. Example mutual fund
Initial investmentCHF 10'000CHF 10'000
Return on Investment5%5%
Costs in the first year0.94%2.90%
running costs0.94%1.9%
account balance in 15 years+18'165.90 CHFCHF +15'650.05
Profit in 15 years CHF 8'165.90CHF 5'650.05
 
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In a nutshell

Because of the compounding costs the difference piles up to staggering CHF 2'515.90. This is 25.16% of your initial investment!

Selma

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Selma takes a look at your financial big picture and shows you how to invest best.