Wealth Management Fee Calculator
Wealth Management Fee Impact
Total Annual Fee Rate-
Year 1 Fees-
Portfolio Without Fees-
Portfolio With Fees-
Total Fees Paid Over Period-
Fee Drag (lost returns)-
Typical Wealth Management Fee Layers
| Fee Layer | Typical Range | What It Covers |
|---|---|---|
| DFM / Wealth Manager | 0.50%-1.00% | Portfolio construction, rebalancing, reporting |
| Financial Adviser | 0.25%-0.75% | Ongoing advice, annual review, financial planning |
| Fund OCF (underlying) | 0.10%-0.75% | Fund manager charges for running funds |
| Platform / Custody | 0.15%-0.45% | Holding assets, administration, reporting |
| Total Typical All-In | 1.00%-2.50% | Combined annual cost |
On a £500,000 portfolio, a total fee of 2% means £10,000 per year in charges — £200,000 over 20 years before compound effects.
Fee Impact Over Time
1% fee on £500k
£5,000/yr
2% fee on £500k
£10,000/yr
20yr drag (1%)
~18% of value
20yr drag (2%)
~33% of value
Negotiate threshold
£250k+
DIY saving
1-1.5% pa
How to Use This Calculator
1
Enter your portfolio value
The starting value of your investments under management.
2
Input all fee layers
Add the DFM fee, adviser fee, fund OCF and platform fee separately.
3
Set expected returns
Use realistic long-term return expectations (e.g. 5-8% for balanced portfolio).
4
Choose the time period
Longer periods show the dramatic compound effect of fees.
5
Review the fee drag
Compare the portfolio value with and without fees to see the true cost.
Frequently Asked Questions
How much do wealth managers charge?
UK wealth managers typically charge 0.50-1.00% of assets under management annually for DFM services. This is on top of financial adviser fees (0.25-0.75%), fund charges (0.10-0.75%), and platform costs (0.15-0.45%). The total all-in cost is usually 1.0-2.5% per year. Fees are often negotiable for portfolios over 250,000 pounds.
Is wealth management worth the cost?
For investors who lack time, expertise or emotional discipline, professional wealth management can add value through asset allocation, tax planning, rebalancing, and behavioural coaching. Studies suggest good advisers can add 1.5-3% per year in net returns (Vanguards Adviser Alpha). However, for confident DIY investors, the fees significantly erode returns.
What is fee drag?
Fee drag is the cumulative impact of investment fees on your returns over time. Because fees compound (you lose returns on the money already taken in fees), even small percentage differences have a huge impact. A 1% annual fee on 500,000 over 20 years at 7% gross return costs approximately 180,000 in lost value — not just 100,000 (the simple sum).
How can I reduce wealth management fees?
To reduce fees: negotiate (especially over 250,000), use passive/index funds instead of active funds (saves 0.3-0.5%), choose a percentage-based platform for small portfolios or flat-fee for large ones, consider execution-only for simple needs, and review whether ongoing advice is needed annually or could be periodic.
What is the difference between DFM and IFA?
A Discretionary Fund Manager (DFM) manages your investments day-to-day, making buy and sell decisions without needing your approval each time. An Independent Financial Adviser (IFA) provides advice on your overall financial plan, product selection, and tax planning. Many wealthy clients use both — the IFA for planning and the DFM for portfolio management.
Official Sources & References
Data verified against official UK government sources. Last checked April 2026.