AUM vs Fixed Fee Advisor Cost Comparison

Compare asset-based and fixed fee structures to determine the most cost-effective approach for your financial planning needs

AUM vs Fixed Fee Advisor Cost Comparison

Compare asset-based and fixed fee structures to determine the most cost-effective approach for your financial planning needs

AUM vs. Fixed Fee Advisor Comparison

Compare fee structures over time

Portfolio Parameters

%

Advisor Fee Parameters

%
First Year Fee: $5,000

Initial Fee Comparison

AUM Fee (Year 1)

$5,000

Fixed Fee (Year 1)

$1,800

You would save $3,200 in the first year with a fixed fee approach.

Current Exchange Rate: 1 USD = Loading... INR

Results Analysis

AUM Fee Model

Initial Fee Rate1.00%
First Year Fee$5,000
Final Year Fee (Year 20)Calculating...
Total Fees Paid (20 years)$0
Final Portfolio ValueCalculating...

Fixed Fee Model

Annual Fixed Fee$1,800
Equivalent Fee % (Year 1)0.36%
Equivalent Fee % (Final Year)Calculating...
Total Fees Paid (20 years)$0
Final Portfolio ValueCalculating...

Comparison Summary

The AUM fee approach appears more cost-effective throughout the entire 20 year period.

Total Fee Difference
$NaN
Savings with AUM fee
Final Portfolio Value Difference
Calculating...
Better outcome with AUM fee

Long-term Comparison

Portfolio Growth Over Time

Cumulative Fees Paid

Annual Fee Comparison

Making Your Decision

When deciding between AUM and fixed fee models, consider:

  • Your current portfolio size relative to the fixed fee amount
  • Your expected growth rate and timeline
  • Your comfort with paying more upfront vs. more later
  • Additional services provided under each model
  • Transition costs if switching advisors