Re: Mutual Funds
8% growth is nothing and almost every AMC in Pakistan is offering that, be it short term , medium or long term. We advice it to those who want to park their capital for short term or to those who want to invest for the long term but have zero risk tolerance.
The commissions are what some of the employees of the company receives as salaries are low (Commission based structure) and management fee is a fee charged for managing your money, which is also used towards building the company (usually 1.25% annually) Im talking about Pakistan. Surely if you want to make money, you have to give money to make money. and 1.25% is not a big amount. Without management fee how will the company grow??