Many investors focus on returns, but overlook one of the most important factors: fees.
The table shows how even small differences in fees can significantly change the outcome of a QAR
100,000 investment over 30 years.
With an assumed yearly return of 8%, the investment grows to just over QAR 1 million if no fees are
charged.
But when a 1% fee is applied, the return drops to 7% annually, and the final value falls to QAR 761,226.
At a 2% fee level, the investment compounds at only 6% annually, reducing the value to QAR 574,349.
This difference—over QAR 400,000—highlights the hidden cost of fees.
While 1% or 2% may sound small, the impact of compounding over decades is substantial. For long-term
investors in Qatar, this underscores why fee structures should be examined as carefully as returns.
The lesson is clear: keeping costs low allows more of your money to work for you.
When comparing investment products, it’s not just about projected growth—it’s about how much you
actually keep after fees.
In a market where compounding is one of the most powerful tools for wealth creation, minimizing fees
can be the difference between reaching or falling short of financial goals.
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