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Old 01.11.2010, 15:45
Posts: n/a
Re: Investment Fund Savings Plan/Income Plan

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Maybe it is like this: Fr.20,000 down

Fr.125 per month, or Fr.1500 annually.

for 12 years.

Total you paid in after 12 years is Fr.38,000. IF it earns an average 3% per annum, you will have Fr.50,000. This is nothing special, but, it is a big IF.

My usual question for investment funds is their commissions. It is no use if you choose a fund which expect to earn 4% but they charge 2% annually for their management fees. Even worse, they say they charge only 1% fees, but forget to tell you that there is a minumum charge of Fr.50 (which if you pay Fr.1500, is a lot more than 1%).
It sounds like this is a 3% guaranteed net return. Which is fair, but not great.
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