- Joined
- 6 July 2007
- Posts
- 202
- Reactions
- 1
If you were paying 4% upfront and 1.75% ongoing for an index fund then you were being seriously done over. Given the weighting of the top 20 companies in the various indexes, all you have to do is buy the top 20 shares according to weighting and you are very very close to having a ASX 100 index fund. All for the price of small brokerage upfront and occasional reweighting if you so choose.
It wasn't an index fund that's the thing, it was an actively managed fund. after really looking into it I noticed it was nothing more than what you wrote above. So where is the added value in an actively managed fund if the FA could have recommended STW or another index fund.
oh yeah the extra money they receive.
Not all FA are bad people.
But they need to run on a model which is different to selling insurance. IE: Sell as much as you can and who gives a **** about anything, just sell sell sell.
G