A couple of months ago, I mentioned Fundsupermart in one of my postings. The distributor has just decided to charge a platform fee starting from 1st May 2010 although it has also lowered the sales charges of its funds. The platform fee is a recurring cost - meaning you will pay this fee every quarter regardless of the return of your funds. The amount paid is a percentage of the holding of your funds. This is a cost that you should consider in addition to other fees such as sales charge when you are investing in funds with this distributor. In investing, every cent counts. You should refer to the Fundsupermart website for details.
For those who feel that they should not be paying this additional recurring cost, you can consider transferring your funds to other fund distributors e.g. Dollardex, POEMS, etc. Their sales charge may be different but they do not charge a recurring platform fee. Transferring of funds may take a while but at least you do not have to sell your funds in Fundsupermart and buy it back again from the other fund distributors. This will incur an unnecessary 1 to 2 percentage sales charge.
Disclaimer: The content in this blog contains purely my personal opinion and it is in no way a substitute for professional financial advice. You should seek advice from a professional financial advisor with any question regarding your financial matters.
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