Tuesday, April 6, 2010

Platform fee on Fundsupermart (2)

Some investors are unhappy with the platform fee of 0.5% that is being imposed by Fund Supermart. They have two options of responding:
- move to another platform, e.g. Dollar Dex or POEMS]
- sell their unit trusts

They should consider the second option for the following reasons:
- they probably make a profit from the high stockmarket prices now
- by selling the funds, the fund managers may ask FSM to remove their platform fee.

The underlying unit trusts already pay a share of their annual fee to FSM. It is not fair for FSM to add a new layer of fee.