Which is better option for growth Long Term

[silkman]

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]

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]

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.

 

[silkman]

At least 5 years

 

[silkman]

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

 

[Pegasus]

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]

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

 

[Pegasus]

Assuming no growth and taking the fee off annually (It's probably monthly), and removing the initial 1.5% for option 1 over 10 years...

 

[silkman]

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

 

[Pegasus]

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.



Formulas if you want to check

 

[silkman]

awesome thanks bro

 

[Pho3nix]

Just doing a simple annual growth not compounded daily.
View attachment 1206116


Formulas if you want to check
View attachment 1206118

Running slow. Why 1.07 when you are comparing the growth?

 

[Pegasus]

Running slow. Why 1.07 when you are comparing the growth?

It’s 1 + 0.07.
That is what you multiply a number with to add the growth.

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