Tuesday May 24, 2022

When investing in the fund threatens to charge fees

The day of investment is not free, even for fund funds, which are considered to be one of the cheapest forms of investment. Income from the funds is negatively affected by various fees, which may not be particularly apparent at first glance, even with the most frequently mentioned entry fees. That is why you need to be careful when investing in funds.

Although the fund encounters several types of fees, the most common of which is the entry fee, which is paid by the investor when buying share certificates. Fees vary according to the company, according to the investment, and thus according to the type of fund. Of course, stock funds charge the highest fees (for domestic funds, they range from 0.88% for flows over CZK 2 million and 4% for the lowest flows). Bond funds (0.25% – 2.1%) have no fees, but also expected returns, and you pay the fees to the money market fund (0.10% – 0.5%).

Although the entry fee appears to be a simple matter, it may not be so. His deed in this way in the way of sweat. Some investment companies use the example where the invested amount forms the basis for the calculation of the fee. At prices of 100,000 and 5% of the fee, it is therefore 5,000 K. The investor actually invests 95,000 K.

The second option is the way in which the 100,000 mentioned represent the amount increased by the entrance fee (this amount is therefore 105%). The fee is then calculated as (100,000 * 5%) / 105% and in fact only 4,761.90 K. The investor therefore actually invests 95,238.10 K. It is clear at first glance which method is appropriate and the reflection is This is so on the growth needed to reach a real 100,000 K. In the first case it will be 5.26%, while in the second it is exactly 5%. Domc investin společnosti uses both methods roughly to the full, and it is therefore good to find out before buying share certificates (on the Internet, or in the statute you will find only this information). In the tables you will find a comparison of the data of the six largest domestic investment companies offering crowns under the funds.

You invest more, pay me
It is necessary to pay attention to the fact that some companies state for the better impression only the lowest fee (possibly written in the squadron from), but in most cases they pay only for amounts that are unavailable to the average investor (usually 2 million or more). Usually the fees are stated in the interval from to, in this case it is then necessary to deal with these fees. The difference between the highest and the lowest fee can in some cases be even more than one percent (for example, in some equity funds), which is a total of 100,000 crowns. You can view the table of entry fees of mutual funds HERE

The Investin funds of SOB and Komern banka (KB) do not have a surrendered fee and thus do not play a long role in the investment fee with the entry fee. This may be suitable for investors who invest. On the contrary, for investors who make your investments, this can be a disadvantage.

A special group of funds consists of the Investin kapitlov funds of the Komern banka (IKS) company, which does not charge the entry fee. Depending on how long the investor has left the funds in the fund, he then charges an entrance fee. This method may be suitable for investors who are willing to leave the funds in the funds for a long time, because in that case they do not pay an entrance fee (according to the first fee). The company thus indirectly motivates investors to leave their funds in the funds for a long time. In the case of money market funds, fees do not apply after one year, in the case of bond funds after those years and in the case of equity funds, entry fees are avoided after five years of investment. These times practically represent the recommended investment horizons for a given type of fund.

When buying a money market fund, the most pleasant surprise is the company P Invest, which does not require a daily entry fee, regardless of your investment. SOB thus charges a low entry fee, both for low investments and for sums invested. Keep up with ING and Pioneer, both for the low tide and for the highest investments.

In the case of bond funds, ISS has the lowest price and pay the multiple fee to ING. If you invest in a large amount of bonds, the difference between the lowest entry fee (ISS) and the highest (ING) jet is in (ING then probably compensates the fee for the fact that conservative investors will offer the most suitable term in the domestic market). For low investments in equity funds, pay the most for the P Invest fund (if you invest less than 60,000) and the ING fund, and for the most, the P Invest fund will buy the most.

A separate group consists of profiles of funds, which have recently attracted a lot of investor attention (also due to the company’s marketing activities). Investin companies thus offer a comprehensive price, which can be required especially by inexperienced investors and those who see the possibility of simple diversification in profile funds. View the table of entry fees of profile funds HERE

Surprisingly, the ISS offers a good fee structure, which in all cases offers the most suitable entry fee. At the far end of the low investment are Pioneer (highest fees in the dynamic and developed profile) and SOB (highest fee in the cautious and conservative profile). SOB (careful, conservative and balanced profile) and IKS (dynamic and careful profile) pay the highest fees for highly invested contacts. It should be noted here that especially with conservative and prudent investment profiles, the differences between the highest and lowest fees are quite significant.

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