Quote:
Originally posted by 7wonders
Quote:
Originally posted by Pramod Chopra
Quote:
Originally posted by 7wonders
I don't know ABCD of stock and all and I am little bit interested to invest some money. So, could anybody tell me name of reputed broker I can trust and can take advice on..
Thank you in advance.
If you do not know ABCD of stocks then please stay away from the equity market, at least for the time being as the markets are having roller coaster rides due to the ripple effects of the US Sub-prime mortgage.
If you have some money to invest and are for the long haul then you can invest in good quality balanced funds. However, if you are not for the long haul and also want to preserve your capital, then some savings bank account can give you as high as 4.1% interest wherein you can park money for the time being and in a couple of months you can decide where to invest.
I also have same question for you that if you are a financial advisor how will you charge is it on hourly basis or on % basis.
Thanks
It is neither by the hour nor on a percentage basis. In fact you do not pay any fee (at least directly) to us.
As is the leading practice in the industry, most advisors who advise and invest in mutual funds for their clients, do not charge any fee to their client as they get paid a commission (sort of finder fee) when their clients invest through them. The Mutual Fund Company gives a commission to dealer/advisor depending on the product chosen and this commission comes out from the management fee charged by the Mutual Fund company/Bank to every investor and it is declared in the mutual fund prospectus. The returns you get from the investment are net returns after taking out these charges by the MF and hence you do not see these. Please also note that the advisor gets paid only when you invest through him/her. In addition to that the advisor generally gets a trailer fee till such time the funds remain invested. Hence, it is in the best interest of the advisor to look for your best interest so that not only you remain with him/her as a client but also refer your family and friends to him/her.
Similarly, when I arrange a mortgage for my client, I do not charge him/her any fee as I am compensated by the lender who pays me a finder fee for bringing that business.
Should you have any questions or need further clarification, please either send a pm or call me.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Asset managers typically charge 1-2% of assets under management. This can be negotiated to below 1% for high net worth individuals (few million $).
Mutual fund is a basket of securities, managed for pool of investors, by mutual fund company. Company charges Management Expense Ratio (MER) = transaction fee + advisor/research fee is typically in 1 - 3% range. This is called active management; since someone is trying to actively manage a portfolio and trying to beat the benchmark (reference). For most Canadian domiciled domestic mutual funds the benchmark is TSX index.
For the sake of completeness it should be mentioned that:
Most (96%) mutual funds are unable to beat the benchmark, i.e. active management lags passive investing.
Average mutual fund has stellar performance for 3-5 years. So a fund posting double digit returns for past few years is already done.
High MER = high lost performance. Say market returned 10%/annum, and fund has a MER of 2%. Investing $10,000 in this fund for 20 years will amount to $46,000 where as market return would have been $67,000 resulting in $20,000 loss to the investor.
As has been mentioned in previous posts - fund salesman get paid by fund companies. Since all salesman are not created equal, some tend to push products which work towards their own pockets rather then investor's.
Financial planners can add value by analyzing the big picture and advising on investing, insurance, taxes, estate and wills. Covering just one aspect is not sufficient. Good financial planners are difficult to find. Most advisor's working at bank or brokerage don't come close.
Location: Toronto (416-7305795)
Posted on: 30-12-07 14:09:49
Quote:
Originally posted by 7wonders
I don't know ABCD of stock and all and I am littlebit interested to invest some money. So, could anybody tell me name of reputed broker I can trust and can take advice on..
Thank you in advance.
Hey:
My suggestion to you would be to fix up an appointment with a Personal Banker with the Bank that you deal with and they can guide you whether to invest in GIC or mutual fund or other products.
Good luck,
TS
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TS
Quote:
Originally posted by Mr.Scorpio
Quote:
Originally posted by 7wonders
I don't know ABCD of stock and all and I am littlebit interested to invest some money. So, could anybody tell me name of reputed broker I can trust and can take advice on..
Thank you in advance.
Hey:
My suggestion to you would be to fix up an appointment with a Personal Banker with the Bank that you deal with and they can guide you whether to invest in GIC or mutual fund or other products.
Good luck,
TS
Good Luck! Sure you are going to need plenty of that if you are going the bank way.
The way advisor's approach works is that advisor advise you where to invest. You invest on his/her advise. and when that advise pays off that when you and the advisor make money, he/she makes it on the appreciation. If his/her advise tanks he/she doesnot make money, didley squat and tops you bad mouth him/her to everyone else. So a advisors has the onus (no pun intended) to scan the financial market and cherry pick investments for you, to make sure he/she makes money for you, advisor has vested interest in you making money.
Whereas a banker can select from only what they have, they get paid salary (no onus) whether or not you make money on the only the banks products. Of course you got to make sure you have a advisor with a proven track record and market dept.
Banks work for bank, advisors work you.
But then it is your call.
