Post by tracy
And you have to pay them commission fee, service fee, GST/QST.....(based on your assets, not on your profit).
All the mutual funds charge you service fee and commission fee every year based on how much money in your account. Let's say the total fees are 3%, your initial investment is 10,000, after one year, you have 9,000, they charge you 9,000*3%=270, plus GST/QST. If you are lucky, after one year , you have 11,000, they charge you 330, plus GST/QST.
So no matter you earn or lose money, they have income from you, just the amount of more or less. i am not very sure what do you mean "commission fee", "service fee", in my case i don't need to pay any fees up front. (no-load), there are plenty no-load funds out there. it doesn't mean it is free, there are costs involved , for sure. the expenses varies greatly, from .5% to 1.8%, (for me), actively managed funds cost more, because it needs more attention. i have never heard of anything like 3%. |