Paasa calculates and deducts fees seamlessly, ensuring accuracy and transparency:
Daily Calculation: We track your assets under management (AUM) at the end of each day.
Monthly Deduction: At the end of every month, we calculate fees based on the daily AUM values and deduct the amount automatically from your linked bank account.
Example:
Suppose your AUM fluctuates throughout the month:
Day 1–10: $50,000
Day 11–20: $75,000
Day 21–30: $110,000
We take the average daily AUM and apply the correct monthly rate to ensure an annualized charge that matches the stated fee tiers.
For instance, if your average daily AUM for the month is $80,000, the applicable 0.9% annual fee corresponds to a monthly rate of 0.0746%
Thus, your monthly fee is:
$80,000 × 0.0746% = $59.68
This amount is automatically deducted from your brokerage cash account.
By structuring our fees this way, we ensure that your effective annual fee remains exactly as stated, with no hidden compounding effects.