In our opinion any investor that pays more than 0.5% for exposure to the South African stock market is paying too much! Currently, the All Share Tracker fund have a total expense ratio of 0.32% and charges a management fee of only 0.2%. This compares to South African funds that have up to 3% in fees per annum attached to them.
It is well known that Investment Managers fail to outperform the total return earned on stock market indexes; and due to the fees that they charge it is no surprise that we get the following graphical representation of what the funds earn over the long term:
Performance: End of April 2015
|12 MTH %||24 MTH %||36 MTH %||60 MTH %|
We recommend switching to the All Share Tracker Fund.
Clear thinking leads to clear benefits