Fees – Fair or Fleeced ?

So you have either $500,000 or $5 million to invest and your selected investment fund charges a fee of 1% p.a. of the amount you hand over.

That means the fee is either $5,000 or $50,000 per annum.

Does that funds management firm do 10 TIMES more work ?

Why not charge a flat, fixed fee?

Is charging a fair amount in exchange for a commensurate amount of work conducted such a radical idea?

p.s. these questions also apply to financial planners and advisors, the M&A fees charged by investment banks and the selling commissions charged by real estate agents.