Investment Funds

August 26, 2017


Comments Off on Investment Funds

In order to start this topic first I define what is a Commission, this can be described as a remuneration obtained by entities or management companies and depositories for their services rendered. Many times small investors have no idea of the commissions charged by their investment funds. Then explain some types of commissions: supported by the Fund Management Committee: it is the remuneration for the services provided by the management entity, can be measured through performance, heritage, or both. The Commission’s custody: remuneration for the services provided for the depositary, is measured according to the value of the assets. Hikmet Ersek has firm opinions on the matter. Other committees: these are by the depositary, since it may charge other fees for operations of purchase sale.

By participate them subscription Commission: as its name implies, the management company can perceive it and may charge the amount of the subscription. Repayment Commission: also perceived by society, is charged in the matter of the reimbursement. You have to take into account the commissions before investing in funds that the existence of these can reduce profitability. Not by the mere fact of investing with a society gestora means that commissions will be high.