Stanlib Investment - is this normal?

[mr_norris]

https://wealth.momentum.co.za/investments/factsheets/absa-prime-equity-fund-(a).pdf

If it is that, something else that could contribute is the fees. If the market is tanking or flat, you're still paying fees, so you're losing money. I would be interested to know what fees OP is paying. From that doc:

Initial Fees:
Absa: 0%
Adviser: 0-3.45%

Annual Fees:
Management: 1.15%
Adviser: 0-1.15%
Performance Fee: No

Those ones in bold would concern me. I would take a look at the transaction history to see where the money went, and how much of that R500 pm goes towards the investment.

 

[initroot]

No financial advisor but Investec geared products with capital protection.
Note that these are also available on the secondary market via easy equities. Just be careful with your calculations to ensure you are at a good buy-in. I didn't have the 100k to start off so went onto the secondary market and its been doing really well.
You'll thank me later....

 

[jman]

What are the fees? I'd cash it out and rather put it in a low cost index fund

 

[Rouxenator]

This one?

Indeed, I think the "A" in CLASS A stands for ASS



Can you believe the utter bullshizz where you now need to have at least R5k invested for a measly 50 points.

 

[supersunbird]

Indeed, I think the "A" in CLASS A stands for ASS

View attachment 641492

Can you believe the utter bullshizz where you now need to have at least R5k invested for a measly 50 points.

That's why I didn't do FNB unit trusts to get a level when I still did the ebucks thing, certainly not the best unit trusts out there, cost wise.

 

[zerocool2009]

Dear Rouxenator,

At the end of the day, if you entrust someone with things like shares, dont get mad if your things did poorly.

Those broker cash in every month (trust me). Been in that same boat a few times finding out how guys getting ripped off.

Think I can write a book by now of firms to avoid !

 

[zerocool2009]

Cant be as bad as Old Mutual foreign account. I started with R1000 p/m last year, It's been running at -20% growth every month since then. Closed it on Monday. In total I put R9000 in it, it's worth R2600 now.

I have seen a few bad products. One is Sanlam Echo Bonus. Sjoe ... if any of you have that, check out that monthly "Bemarkings Fooi" ! Liberty and Momentum has something very similar !

 

[mr_norris]

I made similar mistakes. A young mr_norris bought a new car with a balloon payment. That mr_norris saw a financial adviser and was advised to take out an endowment which would mature in march this year.

The expected growth was 10% per year. Every year my contributions would increase by 10%. The fees were hidden from me. I was younger and much more naive.

Well boys, March came, and I have almost less than half of the projected amount, and less money than I contributed. A stock standard savings account with low interest would have done better.

Yes, the market hasn't been great so that's partly to blame. I see it as school fees. Now I do my homework, scrutinise fees, and avoid financial advisers.

This isn't a sob story, just one of disappointment. I thought I'd have a nice bit of cash to invest elsewhere

 

[Rouxenator]

In my case it is the opposite. I sometimes worry about the future, then on the other hand I worry I am wasting the best years of my life being prudent.

What I can say is I am on content with how things are - but FOMO on what it could be. I'll probably inherit pretty well but I am not banking on a cent that is not mine so yeah, kinda sucks.

That's why I ride a bike everywhere despite having a nice car.

 

[jman]

I made similar mistakes. A young mr_norris bought a new car with a balloon payment. That mr_norris saw a financial adviser and was advised to take out an endowment which would mature in march this year.

The expected growth was 10% per year. Every year my contributions would increase by 10%. The fees were hidden from me. I was younger and much more naive.

Well boys, March came, and I have almost less than half of the projected amount, and less money than I contributed. A stock standard savings account with low interest would have done better.

Yes, the market hasn't been great so that's partly to blame. I see it as school fees. Now I do my homework, scrutinise fees, and avoid financial advisers.

This isn't a sob story, just one of disappointment. I thought I'd have a nice bit of cash to invest elsewhere

Sucks man, sorry.. Information on this kind of subject has only really been so freely available online over the past 5 years or so, with a local context, at least. I'm sure financial advisors hate it nowadays