Just meet my BTM buddy who is gonna be station at USA for the next 2 years. Catch up abit, fatten up abit and talk cock abit. Then he told me that he have some investment using iFAST. Brought a few high risk funds from first state. Which is good, better than Insurance investment, so i asked him about the commission and the sales fee. He everything also don’t know, siao liao dunno isit kana chop. So i decided to do some research on First State funds for him.
FIRST STATE ASIAN GROWTH FUND (Reccomanded by FundSuperMart)
So you can see the fund charges is around 3% + iFast fee 1-3% depending on your adviser.
3-6% u can say very little but you see the fund growth, 6% average over 10 years. Means all your gains all go into fees and commission. If you have a investment now please go check your fees! Agents always avoid this kind of question one, call them to get your free Starbucks!
So what is the solution?
DIY, buy ETF off stock market. ETF charges easily less than 1%. Don’t let funds eat into your profits. Funds managers don’t get rich from investing, they get rich from your commission.
If die die want to use iFast, do it online, use fundsupermart, eliminate agent sales charge.
Some investors have made fortunes through what appear to be superior analytical skills. Household names like Peter Lynch and Warren Buffett achieved their successes through picking individual stocks. Many more individuals you’ve never heard of have attempted similar strategies and failed. Even most professional mutual fund managers can’t beat the market, and while this is not a popular theory, Lynch and Buffett may have just been exceptionally lucky, even if they are financial whizzes. Highly regarded economists have, in fact, shown that a portfolio of randomly chosen stocks can perform as well as a carefully assembled one.
Yes, you may be able to beat the market, but with investment fees, taxes and human emotion working against you, you’re more likely to do so through luck. If you can merely earn the same returns as the market, you’ll be doing better than most people.
Quote from Investopedia.com