With fees, a little understanding goes a long way

Fees are central to investing, but they are also much misunderstood. They are split into many categories, and disclosure varies from fund to fund.

Managed funds

Managed funds are unlisted unit trusts. They are the standard mutual funds you see in banks.

The first thing you pay is a selling commission, usually a one-off charge of up to 5 per cent. High-value (in other words, rich) clients will often be offered a discount on this fee, down to as little as 2 per cent. Even if you're not loaded, always ask for a discount.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1225511/fees-little-understanding-goes-long-way