What is the difference between Entry Fee and Nil Entry Fee Managed funds?
When completing a fund PDS application document you may come across two different entry fee options. • Nil Entry Fee option – means that there is no entry fee charged. However the fund manager may adjust the management fee (MER) higher to compensate. • Entry Fee option – means that generally an entry fee of about 5% will be taken out of an investor’s initial investment amount, as well as any subsequent further contributions. The 5% is usually passed on to the financial adviser, intermediary or kept by the fund manager. You should select the Entry fee option, and allow YourShare to rebate 100% of the entry fees as additional units in your chosen fund. This way you will effectively receive nil entry fees and ensure you are charged the lower MER on your investments for as long as you hold them.
