Which is better option for growth Long Term

silkman

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Aug 20, 2005
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I have 2 quotes on the same unit trust (investing lump sum R200 000) for an elderly relative.
1) 1.5% upfront then 0.5‰ annually

2) no fees upfront then 0.65% annually.

Which one is best

TIA
 

3WA

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Sep 25, 2012
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Depends how long you're invested. Eventually option 2 will exceed option 1

Unless you really meant per mill in option 1, then it's really cheap.
 

Scooby_Doo

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There would be a break-even point after which option 1 would be better. How long until they need it?

Edit.

Break-even is about 10 years. So if they need it in less than 10 years, go with 2, more than 10 years go with 1.
 
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silkman

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Depends how long you're invested. Eventually option 2 will exceed option 1

Unless you really meant per mill in option 1, then it's really cheap.
No - don't mean per mill
 
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Pegasus

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I have 2 quotes on the same unit trust (investing lump sum R200 000) for an elderly relative.
1) 1.5% upfront then 0.5‰ annually

2) no fees upfront then 0.65% annually.

Which one is best

TIA
Which Unit trust and which product? And is that the financial planners fee only?
 

silkman

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It's an Oasis and Liberty product.
2 different ones.
Yes that's the planners fee
 

silkman

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Wow
Thanks for that
What would happen on a 7% growth? I assume option 2 would be worse then
 

Pegasus

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Wow
Thanks for that
What would happen on a 7% growth? I assume option 2 would be worse then
Just doing a simple annual growth not compounded daily.
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Formulas if you want to check
1638476338902.png
 
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