I have never invested in anything so completely new to this. After doing some research I found that put money in Managed Funds is a better option for me rather then term deposits as I am yet to be 30 and still have some years where I can plan for my retirement / take risks.
Now that's out of the way here goes.
Is there anyone here that is using or has used this facility. I had a questions in regards to "Management fee". From what I read online most people say that if you can invest directly go to the source to cut out middle man so if you make gains, most of your money won't be taken up by fund managers.
Now having a read on the RaboDirect website I saw that they charge you a entry fee of 0.75% which is one off so that's okay.
The part I don't understand is how the management fee works. The image below Rabo says fees are charged by the fund provider. So I assume that means the fund provider has there own managers which charge a % for there work.
They also say that they have fund managers so does this refer to the fund providers fund managers or RaboDirect inhouse fund managers?
Is that a % or is that a $ value?
Lets say for example I invest $500 and make $500 gain so will the management fee be $10 p.a as a total is a $1000 (using Mint Aus as example) ?
I know these would be better directed to the help desk for Rabo but thought it would be also good to get some feedback in regards to the users here that have had experience in this. I have had some bad experiences with help desks recently so staying away from them as much as I can.