DT. wrote:Paphitis wrote:DT. wrote:
Well the Dow Jones industrial since 92 has netted 626% return. Your managers would have done better if they’d just bought an index tracker and paid back your fees.
That is an option that they offer. They offer the index tracker as an investment option.
And I suppose if I had a Dow Jones Index Tracker since 1992, I would have made 692%. But ordinary shares have been doubling on average every 5 to 7 years too.
You can get an index tracker from anywhere...no reason to pay these guys fees for following an index.
The thing with paying these fees DT - In Australia, every working man, woman and child has a fund account.
Most people are astute enough to go in their relevant industry run fund which has very low fees (Around $100 per year) as the industry fund is usually run by a union or industry body. For example, teachers have their find, police another, nurses have theirs, and pilots have their own too. From what I understand, these funds are aggregated and run by the commercial providers anyway.
If you do not elect to go with an industry fund, you go with a commercial provider and which charge more than $100 per annum. You would go with The Commercial Bank as an example, which charge about $600 per annum.
They all offer the same products for a fee. they also have trackers.
I have a financial advisor which I get some major advice, and he was the person that suggested to invest in a tracker but I preferred not to. It was really more of a case that he mentioned they were available and this is how they performed over the years. The concept is of interest to me.
I could still do it one day, but we are in a bear market right now. The timing for those products is not good. Maybe when the Bull starts raging again. Maybe in 2 years time.
Right now its time to bunker down and head for the Gold and Banking stocks. The biggest enemy to the market right now is uncertainty.