Author Topic: initial charge and annual fees  (Read 2706 times)

Offline vai

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initial charge and annual fees
« on: February 01, 2007, 06:39:11 AM »
hello, need help on this :           http://biz.thestar.com.my/business/unit_trust.asp

in the column 'initial charge' , let's say for example , the first row is DANA ALAIMAN ; if we invested in this trust of RM10K , then the initial charge is 6.50 . What does that mean, is it 6.50% charge of our initial investment ? or is it just RM6.50 for initial investment ?

2nd q's : the annual fee is 1.50 . is it also in percent of our total investment ? that means if the dividend for certain year is 9% , we only get dividend of (9-1.5)% of our investment = 7.50% ?

thanks in advance

Offline 1liner

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Re: initial charge and annual fees
« Reply #1 on: February 01, 2007, 12:33:54 PM »
6.5% of ur investment dude... if RM6.50, nobody will be an unit trust agent

Offline vai

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Re: initial charge and annual fees
« Reply #2 on: February 01, 2007, 05:06:53 PM »
yes that what i thought, just not sure as i;m new in unit trust inv.

what about my 2nd question there , anybody can help ?

Offline earwax

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Re: initial charge and annual fees
« Reply #3 on: February 02, 2007, 08:39:57 AM »
I think you are right, it's 1.5% of annual fees. The figures reported in the Unit Trusts' annual reports are those after subtracting management fees.
Right beside every great brain there is... Earwax! :)

Offline julez.lim

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Re: initial charge and annual fees
« Reply #4 on: February 03, 2007, 01:30:56 PM »
Vai,
Not too sure exactly on their calculation methodology. All I know is that they take 1.5% off your total investment amount.

Offline vai

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Re: initial charge and annual fees
« Reply #5 on: February 05, 2007, 03:43:20 AM »
i went to ASNB office yesterday, and they told me that for fixed price trust (eg: ASW2020 and ASB), there's no management fees. and for depositing/withdrawing, it is better to be done on the 1st of any month, otherwise you might loose days to be counted for the dividends for that month.

Offline julez.lim

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Re: initial charge and annual fees
« Reply #6 on: February 05, 2007, 05:03:36 PM »
ASW2020 and ASB is very different from the normal types of unit trust. If not mistaken, they have no initial fee too. That's why they are highly demanded and also because of their good returns

Not too sure about the calculation of the 1st day thing...
Well, getting the info from the authorized representative is better than me :)