Fee based investing is essentially a style of investment management which charges either a monthly or quarterly fee for the service, rather than a series of charges each time an investment transaction is made. The fee covers a range of services, from initial advice on suitable investments, to portfolio rebalancing and continuous investment opportunity monitoring.
There are several advantages to a fee-based investment approach over a commission based one. First, investors can have more confidence that we are taking care of your personal interests over the long term. This is because we receive the same fee regardless of the investment strategy, meaning that we put your financial interests first and not pursue riskier options that may not be in your best interest.
Secondly, the fixed fees involved in fee-based investing are generally consistent and therefore clearer and easier to understand and budget for. What’s more, in some cases, fees may be tax deductible against income. Needless to say, this can result in considerable savings.
Talk to us and we can help you figure out the type of investing that makes the most sense for you.