What happens when a fund manager starts charging at a flat-fee rate, instead of the current trend of percentage?
In a flat-fee world, investing RM 1,000 and investing RM 100,000 would not make any difference to the investor. If you think about it, it won’t make any difference on the fund management strategy either, and it could probably even help lower the brokerage fees with higher volume.
However, that would also depends on the “flat-fee” charges. It’s easy to over-charge also, where the flat fee rate becomes prohibitive and drives investors away.
It would be interesting to see if this happens in the near future.
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