For example, imagine the market earns an average of about 6.5% a year and you invest P12,000 every year. A fund that costs 1.5% (thus you earn 5% a year) will eventually give you P1.45 million in 40 years. A cheaper fund that costs just 0.5% (thus you earn 6%)? You’ll end up with around P1.86 million.
Halimbawa, isipin mo ang market ay kumikita ng halos 6.5% kada taon at ikaw ay nag-iinvest ng P12,000 taon taon. Ang fund na may 1.5% cost (ang kita mo ay 5% kada taon) ay makakapagbigay sa iyo ng P1.45 million pagdaan ng 40 years. Ang mas-murang fund na 0.5% lang ang cost (ang kita mo naman ay 6%)? Magkakaroon ka ng P1.86 million.