Fees Matter.
Minimising cost is a critical part of every
investor's toolkit. This is because in investing, there is no reason to assume
that you get more if you pay more. Instead, every dollar paid for management
fees, sales charges, and trading commissions are simply a dollar less earning
potential return. The more
fees paid for someone to manage your funds, the smaller the amount left for you.
In a good market investors have a tendency to
ignore them and in challenging markets they are scrutinised, but in the end no
matter what type of market we are in fees do matter. The fees paid on the
mutual funds directly impact how much the portfolio is worth at the end of the
day.
The following chart was taken directly from the
Ontario Security Commissions website, and shows the impact of fees on
investment performance.
Albert Einstein understood this very well when
he said, “Compounding is the eighth wonder of the world. He who understands it earns it and he who
doesn’t pays it”.
Royal Bank made almost $9 billion dollar last
year and collectively Canadian banks earned $35 billion dollars, clearly they
understand this concept very well.
If you have any
questions about the fees you are currently being charged please contact us. Scout Investments offer comprehensive investment,
insurance, and mortgage solutions at the lowest cost to our clients.
1-800-795-6701
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