In addition to being a part of the Rise community, we believe that the better informed you are, the better decisions you can make about your money. This includes delivering straightforward details on our fees and how your investments are performing.
Our Management Fee
Simply put, management fee on Rise is a percentage of your assets under management and returns charged to you at the end of your annual investment period.
Why Do We Charge a Management Fee?
To make sure your investment performs so you earn competitive returns, there’s an amount of researching and selecting the right funds for your portfolio carried out by our team of advisors. These professionals make sure your investments get the best and this fee caters for all the expenses associated with managing your portfolio well.
How Is It Charged?
Management fees are charged on a percentage basis of returns earned. This falls between 1.5% and 2% of the total assets under management (AUM) and returns. The amount charged to you will depend on how much we manage and make for you in a year.
Our fees are set up on a descending scale.
- We do not charge a fee if your investment earns below 10%
- We charge 1.5% on investment with returns between 10% and 15%
- We charge 2% on investment with returns 15% and above
How It’s Calculated
Returns below 10% — As stated earlier, we do not charge a management fee if your investment earns below 10% annually. This typically happens with asset classes where returns are fixed and may not go above a certain threshold.
Oiza invests $100 a Rise dollar investment plan
At one year maturity, she earns 10% interest
Bringing her total investment and earnings to $110
Because Oiza earned 10% on her investments, she will not be charged any fee.
Returns between 10% and 15% — When your investment earns at least 11% and up to 15% at the end of the year, we’ll charge you 1.5% management fee.
Fola invests $100 in a Rise dollar investment plan
At one year maturity, Fola earns between 10% and 15%
If his earnings were 12%, Fola has earned $12 and now has total returns of $112
Because Fola has earned between 10% and 15%, he will be charged a 1.5% fee = $1.68
His total balance after charges = $110.32
Returns above 15% — Here, we charge a 2% management fee if your investments earn above 15%. However, you need to earn a little above17% before the 2% management fee applies to you.
Chichi invests $100 in a Rise dollar investment plan
At one year maturity, she earns above 15%
If she earned 18%, she now has $118
Because Chichi has earned above 15%, she will be charged a 2% fee = $2.36
Her total balance after charges = $115.64
It’s also important to note that your expected return is net of fees, and they are calculated such that you do not let go of any of your own money. Rather we get paid only out of the value we create for you. We look forward to you growing your wealth in dollars with Rise.
