In any investment, there’s a certain level of money you have to put in before you see a return. That’s kind of the point of investing: you put something in to get something more out. It’s not free money, it’s putting your money in the right places to turn it into more money. Investing is great!
But some investments are smarter than others. Some investments, like mutual funds, can cost you quite a pretty penny right up front. Let’s look at some of the costs associated with mutual funds.
Annual Fund Operating Expenses
There are a lot of ongoing fees you’ve got to look out for if you invest in a mutual fund. There are management fees that go to the people who run and operate the fund, and 12b-1 fees, which go towards marketing and selling the fund, as well as other shareholder services. Then there can be a whole load of other administrative and managerial fees that you don’t really want to deal with.
More expenses? That’s right, as a shareholder in a mutual fund you’re also responsible for things like sales loads, which are commissions you pay when you buy or sell shares, redemption fees, which you pay if the fund doesn’t feel you’ve held onto a share long enough, account fees if your investment falls below a certain waterline… the list goes on and on. There are so many little costs you have to account for when you invest in mutual funds just to have shares in them in the first place, let alone if you want to actually do anything with your shares.
How Can I Avoid This?
The best way to get around mutual fund fees is to simply invest in something else. Real estate, for example, doesn’t have all these hidden costs and fees. When you invest in a property, you pay in what you pay in, and if it’s a rental property you probably aren’t even paying the utilities for the building.
Real estate is a really smart investment for a lot of reasons, chief among them the fact that it’s straightforward. You invest in a property, you know what you’re paying and what you’re paying for. This is one of the reasons to consider real estate for your next investment.
About Dave Dubeau
Dave Dubeau is a real estate entrepreneur based in British Columbia.
He has been actively involved in Canada-wide Columbia area real estate investing since 2003.
Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves.
It is truly a win-win-win way of investing!
Dave offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset,
and without the hassle of being a landlord, please contact Dave.