Can your investment representative be cheating you out of your profits? and Summer Reception - Green Investment Bank debate - 30 June 2010

Can your investment representative be cheating you out of your profits?

I invest in mutual funds with a group I will leave anonymous. I just started. I know that mutual funds are like stocks and any other investment there's a chance you can lose money. However, is it possible the representatives can be storing away any profits that you did make into their account and making it look like you lost money from the investment? If so, I might just go to saving money from the bear market point of view. Savings bonds, Certificate of Deposits, savings account, and any other sure profit investments rather than these unpredictable and shady investments strategies. What do you think? Make money the old fashioned way and just save it?


Investment best answer:

Answer by waggy_33
Yes, by selling you funds that charge you a 5.75% upfront fee and also have a 1% or 2% annual sales charge and putting you into funds that have high expense charges. All of these fees reduce your rate of return and can cause a loss.
If the sales person feels like they want to earn more they will have you sell one fund family and have you buy into another so that the fees start over again.

Investment

Summer Reception - Green Investment Bank debate - 30 June 2010


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