MGX 1.67% 29.5¢ mount gibson iron limited

Aussie Stocks are Pathetic, page-11

  1. 337 Posts.
    lightbulb Created with Sketch. 16
    Agreed, but think about it, it will increased investor risk!

    Will fund manager reliable for any money losses? If not, they will just want to earn their fees by indulging in big risk. Situation will be: when quarter about to end, they will be assessed how much can they earn based on their clients portfolio return. It will be bad if they cant earn anything. So invest in high risk high return short timed investment, afterall, losing money they will just getting fired, better then sit there do nothing, earning nothing.

    Unless the fund manager willing to guarantee that any losses they will be reliable. If not, the whole no return=no base fees suggestion can be outright dangerous to the clients.
 
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