Switching fee

Pays for:
Moving your investments within the product you have chosen or between products. If you're selling and buying shares, the switching fee will be in addition to the brokerage fee.

Also known as:
Processing fee, handling charge.

Cost:
Nil to $150. Typically, $100. Sometimes it might be a proportion of the assets switched (say, 0.5% or even as much as 1%) but with a maximum dollar amount. If you're switching to another product with the same provider, the exit fee may be waived but the full entry fee for the new fund still applies.

Tips:

• Switching fees normally only apply if you have choices about the type of asset (for example, cash, bonds, and shares) your money is invested in.
• Make sure you know how many switches you can make without paying a fee.
• If you want to regularly change your strategy, choose a product without a switching fee.