Hi everyone,
My parents (in their 60s) recently received an investment proposal from a major bank in Germany (Commerzbank), and I’m starting to question whether the fees are reasonable — or if they’re just trying to profit off commissions.
**Situation:**
* Planning to invest around **€200K** (new funds)
* Investment horizon: **5 years**
* Goal: **Growth**, moderate risk tolerance
* No ESG or sustainability requirements
**Bank’s Proposal:**
They recommend a **diversified mix** of:
* Actively managed equity funds
* Real estate fund (open-ended)
* Balanced/multi-asset funds
* A gold ETF (Xetra-Gold)
# Fee Summary:
* **Ongoing yearly fees**: Around **2% of the total portfolio**
* **First year fees** (due to upfront charges): Over **5%**
* **Estimated 5-year cost**: \~**15%** of the total invested amount - From my perspective I thought it is quite high.
Also, I noticed that the bank receives **retrocessions (kickbacks)** from many of these products, which raises red flags for me. Almost every product they recommended is an actively managed fund with relatively high costs.
# What I’m Wondering:
* Is this kind of fee structure **normal** in Germany/Europe?
* Should I be concerned that they’re pushing high-fee funds?
* Would I be better off using **ETFs, robo-advisors, or a fee-only advisor**?
* Has anyone here had a similar experience with traditional banks?
I don’t mind paying for good service and advice, but I’m just not sure this is worth the cost. Any thoughts or experiences would be appreciated!