Tuesday, April 06, 2010
Switching out
Alas, FSM has announced a ridiculous change to its pricing scheme. Instead of charging 0.5-2% upfront commission on the purchase of unit trusts, they are now charging a recurring quarterly fee percentage, plus a "lower" upfront commission of 0.75%. That's fine if you're a speculator, dumping money in and out ever 3 months or less, but it seriously eats away into capital gains for the buy-and-forget kind of person like me. I'm still considering my options, but chances are I'll be switching out to another fund house, probably DollarDex. And judging by the responses on the forums, there will probably be a mass exodus of investors.
The markets are looking up, but there will probably be a correction end of April/May. Good time to switch out to cash anyway.
Wenky
8:03 AM
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