Comments on: Funds With MERs Over 8%

By: Monday LinkStuff

Monday LinkStuff — Mon, 29 Sep 2008 08:59:15 +0000

[...] Does All My Money Go wrote about funds with mers over 8% – can these even be [...]

By: Preet

Preet — Mon, 22 Sep 2008 22:01:33 +0000

@Ben – sorry my wording was awkward. I didn’t mean to indicate that LSIF’s necessarily don’t have performance fees. I’ve amended the post to read better – thanks for the note!

By: Ben

Ben — Mon, 22 Sep 2008 20:17:47 +0000

Hey Preet:

You say LSIfs dont have performance fees. Most actually do.

In some of the LSIFs listed its the performance fee that driving the high MER. No one likes high fees, but I’ve more sympathy for performance fees.

By: Patrick

Patrick — Mon, 22 Sep 2008 17:29:40 +0000

Uh, wow.

Just… wow.

By: Preet

Preet — Mon, 22 Sep 2008 14:00:22 +0000

I’ve never found a fan of LSIFs. I remember seeing a prospectus with a 10% commission to the selling agent as well – that such a high commission is needed to sell a product should be a warning sign. (Of course, most investors would not be made aware of this.)

But good point – do the math first before making any decisions.

By: Four Pillars

Four Pillars — Mon, 22 Sep 2008 05:01:26 +0000

Don’t get me started on LSIFs!

The problem with paying the tax hit is that you have to repay the original credit – even though the investment is probably worth 1/3 or what you paid for it. So I suspect if you are anywhere close to the end of the 8 years then it is better to wait it out.

Mike