Less expensive investment funds for savers in 2023 according to the AMF's Household Savings Newsletter
Since 2012, the Autorité des marchés financiers (AMF) has noted a downward trend in fees applied to individual investments. In 2023, the decline in fund fees continued. It mainly concerns equity funds and diversified funds.
Each year, the AMF Household Savings Newsletter takes stock of the evolution of the annual fees of french funds as well as that of the fees for a direct investor in shares.
With regard to funds, the Letter highlights the continuation in 2022 and 2023 of the decline observed for more than 10 years for equity and diversified funds. The average annual fee (management and operating fees) for equity funds was 1.35% in 2023, compared to 1.42% in 2022 and 1.51% in 2021. In addition, the average fees for diversified funds were 1.42% in 2023 after 1.43% in 2022 and 1.47% in 2021.
Over the period 2010-2023, the average annual fees of French equity funds fell from 2.3% to 1.5%.
With regard to direct investments, via the internet, in shares listed on Euronext Paris, the Letter notes a decrease in the average brokerage fees posted by retail banks for orders placed from a securities account. For an order of 5,000 euros, the average cost has risen from 0.52% to 0.50% in one year. On the other hand, the average observed level of custody fees has increased over the past year. Thus, the average total amount of custody fees for a portfolio of €60,000 spread over 10 lines increased from 0.30% to 0.35%.
The brokerage fees charged by online brokers, which are much lower than those of traditional banks, have changed little over the past year. For an order of 5,000 euros, the average cost is 0.10%.
In addition, the Newsletter reviews some observations from the AMF Savings and Investment Barometer published in December 2023. When it comes to assessing the impact of an investment's fees on its return, younger people feel more comfortable than their elders. For example, 54% of those under 35 years of age, compared to 43% of those aged 55 and over.
In 2023, the AMF stepped up initiatives to stimulate greater transparency of fees and better consideration of their impact by savers, and reaffirmed its desire to promote the distribution of savings products with good value for money.
To this end, the AMF calls on all financial players to adopt the Glossary of Financial Investment Fees defined in 2023.
In 2024, its work will include monitoring and supporting players in the field of fees.
