Unit trust fees are one of the most important—and often overlooked—factors that determine how much of your investment return you actually keep. Understanding what you are paying for is essential to making smart investment decisions in Ghana.
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What Are Unit Trust Fees?
Unit trust fees are charges that fund managers and other service providers deduct for managing your money. These fees reduce your overall returns, so they matter just as much as the fund’s performance .
The Securities and Exchange Commission (SEC) regulates these fees. Under the Unit Trusts and Mutual Funds Regulations, 2001 (L.I. 1695), all fees and charges must be disclosed in the fund’s prospectus or scheme particulars .
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The Main Types of Fees
1. Management Fee (Annual)
This is the most significant ongoing cost. It is a percentage of the fund’s total assets under management, charged annually. It is deducted from the fund’s assets before the Net Asset Value (NAV) is calculated, so you never see a separate bill—but it reduces your returns .
Typical rates in Ghana:
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1.25% per annum – Bora Fixed Income Unit Trust, Bora Balanced Unit Trust
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2.0% per annum – Fidelity Money Market Trust, NIMED Lifetime Unit Trust, EDC Ghana Fixed Income Unit Trust, FFC Gold Fund
2. Trustee Fee (Annual)
The trustee holds the fund’s assets and ensures the manager acts in your interest. The trustee fee is also deducted from the fund’s assets and typically ranges from 0.3% to 0.5% per annum .
For example, Fidelity charges a trustee fee of 0.4% per annum on its funds .
3. Subscription Fee (Entry Fee / Front Load)
This is a one-time charge when you buy units. Many Ghanaian funds have removed this fee entirely to attract investors.
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Nil / None – Fidelity Money Market Trust, Fidelity Fixed Income Trust, NIMED Lifetime Unit Trust, FFC Gold Fund
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0.5% – EDC Ghana Fixed Income Unit Trust
4. Redemption Fee (Exit Fee)
This is charged when you sell your units, often only if you withdraw within a certain period.
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Nil / None – Fidelity funds, NIMED Lifetime Unit Trust, FFC Gold Fund
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Some funds charge a fee for early withdrawals<span class=””> – For example, the My Wealth Unit Trust charges 3% for withdrawals within one year, 2% within two years, and 1% within three years
5. SEC Asset-Based Levy (New in 2026)
A significant new cost emerged in March 2026. The SEC introduced a 0.2% annual levy on the Net Asset Value (NAV) of all collective investment schemes. This levy is passed directly to investors .
What this means in practice: A fund manager overseeing GH¢100 million in assets now pays GH¢200,000 annually under this levy, and that cost is borne by the fund’s clients .
Summary Table: Typical Fees in Ghana
| Fee Type | Typical Range | When It Applies | Who Bears It |
|---|---|---|---|
| Management Fee | 1.25% – 2.0% p.a. | Ongoing, deducted from assets | Fund assets (investors) |
| Trustee Fee | 0.3% – 0.5% p.a. | Ongoing, deducted from assets | Fund assets (investors) |
| Subscription Fee | 0% – 0.5% | When you buy units | Investor directly |
| Redemption Fee | 0% – 3.0% | When you sell (often early withdrawals) | Investor directly |
| SEC Asset-Based Levy | 0.2% p.a. | Ongoing (from March 2026) | Investors (passed through) |
How Fees Affect Your Returns: A Simple Example
Suppose you invest GH¢10,000 in a fixed income fund that earns 15% gross in a year.
| Fee | Rate | Amount |
|---|---|---|
| Gross Return | 15% | GH¢1,500 |
| Management Fee | 2.0% | GH¢200 |
| Trustee Fee | 0.4% | GH¢40 |
| SEC Levy | 0.2% | GH¢20 |
| Net Return | 12.4% | GH¢1,240 |
The difference between the gross 15% and the net 12.4% is 2.6%—that is what fees cost you. Over 10 years, that difference compounds significantly .
Why SEC Fees Increased in 2026
The SEC significantly increased its fees effective March 2026 to strengthen regulation and investor protection .
Key changes:
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Annual licence fee for fund managers: Increased from GH¢7,500 to GH¢25,000—a 233% increase
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New asset-based levy: 0.2% on NAV for collective investment schemes
The SEC defends the increases, stating they “should not be seen merely as added operating costs but as investments in stronger regulation that protects investors and supports market growth” .
However, analysts warn that these higher costs are being passed to investors and may discourage smaller investors from participating in the market.
What to Look For Before Investing
When comparing unit trusts, do not look at returns alone. Consider the total cost of ownership:
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Management fee – The biggest ongoing cost. Compare across funds
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Trustee fee – Usually similar across funds, but worth checking
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Subscription and redemption fees – Some funds charge nothing; others charge up to 0.5% or 3%
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SEC levy – Now a factor for all funds. It is 0.2% of NAV
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Minimum investment – Lower minimums (e.g., GH¢20) make it easier to start
Quick Facts
| Topic | Details |
|---|---|
| Management Fee | 1.25% – 2.0% per annum |
| Trustee Fee | 0.3% – 0.5% per annum |
| Subscription Fee | 0% – 0.5% |
| Redemption Fee | 0% – 3.0% (for early withdrawals) |
| SEC Levy (2026) | 0.2% of NAV per annum |
| Fund Manager Licence Fee | GH¢25,000 annually (up from GH¢7,500) |
| Tax on Returns | Exempt |
| Regulator | Securities and Exchange Commission (SEC) |
Frequently Asked Questions
1. What fees do unit trusts charge in Ghana?
Unit trusts in Ghana charge a management fee (1.25%–2.0% per annum), a trustee fee (0.3%–0.5% per annum), and sometimes a subscription fee (0%–0.5%) and redemption fee (0%–3%). Since March 2026, there is also a 0.2% SEC levy on Net Asset Value .
2. How much is the management fee for unit trusts in Ghana?
Management fees range from 1.25% to 2.0% per annum. Bora funds charge 1.25%, while Fidelity, NIMED, EDC, and FFC charge 2.0% .
3. What is the SEC levy on unit trusts?
In March 2026, the SEC introduced a 0.2% annual levy on the Net Asset Value of collective investment schemes. This levy is passed directly to investors .
4. Do unit trusts charge entry and exit fees?
It varies. Many funds (Fidelity, NIMED, FFC) charge no entry or exit fees. EDC charges a 0.5% subscription fee. Some funds charge redemption fees for early withdrawals .
5. How do fees affect my unit trust returns?
Fees reduce your net returns. For example, a 2% management fee plus a 0.4% trustee fee plus a 0.2% SEC levy means about 2.6% of your gross return is deducted before you see any profit .
6. Are unit trust fees regulated in Ghana?
Yes. All fees must be disclosed in the fund’s prospectus or scheme particulars under L.I. 1695. The SEC oversees the industry .
7. How do I compare unit trust fees?
Look at the total cost of ownership: management fee + trustee fee + subscription fee + redemption fee + SEC levy. Do not compare returns alone; a fund with higher returns may charge higher fees that reduce your net gainÂ
Source: Accra Street Journal
Last Updated on September 16, 2026 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
