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How much investment in mutual funds? |
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From a few months back equity funds generate profits. According to the latest data, record rates of return for the last six months have reached up to 100%. Increasingly, so investing in mutual funds you think, which frightened the market crash, and you do not have yet any experience in this field. Both some and others should remember that fees associated with such an investment. Certainly, this will avoid confusion and unnecessary nerves. Distribution fee, often called the commission, is charged when we start the adventure with the fund or the purchase of units. Calculated as a percentage of a fund unit, from which he is charged are called "units of type A". It is also the most common way of earning commission which we meet.
Type A is different from type B that the latter distribution fee is charged only when we sell the unit (that is, if they remitted). We also meet with the type C - a mixed, ie, where a commission is paid after payment, and part of the remit. Amount of the commission depends on the amount of our donation. The principle is simple - the higher the payment, the lower the commission. If they have a unit of type B, where the fee is charged only when the sale is calculated from the amount of money paid by us. If the customer pays an amount less than 5 thousand. Buy., the charge distribution is 3%, but if it pays at least 100 thousand. the fee is only 0.50% - gives the example of thefund Arca. Different treatment arises from the fact that the law allows differentiation of fees according to the type of investor. With bond funds, and other safe investment products fees are lower. The greater the opportunity of profits, the higher the fee. Therefore, most funds pay for limited liability companies. The commission is not everything In addition to commission TFI, in which the fund decided to invest, since we also collect a management fee. This fee is charged to the assets of the entire fund, rather than as in the case of commissions directly from the owners of accounts of individuals. A management fee shall be charged annually, rather than on each transaction as commission.
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