You may be thinking that you are making good returns on your investments. You are possibly getting robbed too! While robbery may sound like an exaggeration, how about “losing or deprived of gains that you are otherwise entitled to?”. Who exactly is taking away your gains? It is your broker who is selling regular plan mutual fund investment. There are many these days: agents, banks, broker, online app or website.<\/p>\n\n\n\n
It is a deprivation because you are possibly left with a smaller share of the gains your investment capital makes after inflation<\/a> and taxes. The reason is the % gains you are left with after inflation and taxes is quite small. Possibly 1.5 to 2% of your capital. And if you are paying 1% to the agent\/broker\/app\/website then what are you left with?<\/p>\n\n\n\n When you consider the impact of this cut, over the duration of your investments it is appalling. You will probably lose up to 40% of your entire wealth. That is because these 1.25% to 1.5% commissions compound every year. The net damage will be 40% or even 50% over the course, of say 20 years<\/p>\n\n\n\n I recently read about Terrance Smith, an acclaimed investor in the UK, that If you’d invested $1,000 with Warren Buffett in 1965; it would currently become a nest egg of $4.3 million. However, if Berkshire had been a hedge fund charging 2 & 20 \u00a0(2% annual fees and 20% share in profit), that $4.3 million would have accrued $300k to the you with a stunning $4m to the manager Any percentage share has to be fair and not one-sided. Today’s commissions in equity mutual funds of 1% to 1.5% are quite high and not sustainable. Consider these analogies: <\/p>\n\n\n\n Then why are you doing this to the hard-earned money that you invest?<\/p>\n\n\n\n You must question the true value you are getting out of the commissions<\/a> you are paying.<\/p>\n\n\n\n\n Maxiom Wealth \u2014 Free Tool<\/p>\n Two funds with similar star ratings can deliver very different outcomes. Use our fund comparison tool to check if you’re in the right scheme for your risk profile and investment horizon.<\/p>\n Compare Funds \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" You may be thinking that you are making good returns on your investments. You are possibly getting robbed too! While robbery may sound like an exaggeration, how about “losing or deprived of gains that you are otherwise entitled to?”. Who exactly is taking away your gains? It is your broker who is selling regular plan mutual… Read More »3 Reasons Why You May Be Getting Deprived On Mutual Fund Investment<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":5067,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-3643","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-fundamentals-mutual-funds-guide"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/3643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/comments?post=3643"}],"version-history":[{"count":3,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/3643\/revisions"}],"predecessor-version":[{"id":6618,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/3643\/revisions\/6618"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/media\/5067"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/media?parent=3643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/categories?post=3643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/tags?post=3643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}2. Compounding Reduces your Gains further<\/h3>\n\n\n\n
– Terry Smith in 2010<\/em><\/p>\n\n\n\n3. Percentage Share of Portfolio has to be Fair<\/h3>\n\n\n\n
Is Your Mutual Fund Working Hard Enough?<\/h3>\n