endlssorrow
Supremacy Member
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- Apr 11, 2007
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any1 taking? doing superfundmarkets etc
Retail investors: This appears to be a highly price sensitive segment. How successful has FSM been in convincing people to play 0.5% platform fees a year when competitors have no platform fee?
I think people kam-wan pay the platform fee because FSM offers much more selection of funds on their platform and they are truly independent, i.e. not own by any financial institutions.
POEMS is owned by Philips Securities
Dollar Dex is owned by Aviva
FinatiQ was owned by OCBC
(http://forums.hardwarezone.com.sg/s...elly-up-bought-fundsupermart-knn-3228362.html)
the fact that they continue to do it speaks volume....
Hmm.. How wide selection of fund will help common investors? Most funds that are meant for diversification are available on other platform without this platform fee. I will say most are ignorant and never pay attention to details..I think people kam-wan pay the platform fee because FSM offers much more selection of funds on their platform and they are truly independent, i.e. not own by any financial institutions.
POEMS is owned by Philips Securities
Dollar Dex is owned by Aviva
FinatiQ was owned by OCBC
(http://forums.hardwarezone.com.sg/s...elly-up-bought-fundsupermart-knn-3228362.html)
the fact that they continue to do it speaks volume....
Granted, there isn't much difference, but some people like independent or non-mainstream financial institutions, as I do. It's like the Comfort vs Transcab thingI fail to see how having a wide selection of funds will result in revenue growth for ifast which is what the share price will depend on.
Any competing platform can easily match the selection of funds offered by FSM if they wanted to. This is not an 'investment moat'.
Excessive choices beyond a certain number is not helpful. Why not focus on carefully selecting and offering the top funds such as those ranked by CPF and morningstar (I think CPF rankings are done with advice from morningstar) instead of offering all types of funds including possible bottom performers?
Thanks to spinfire for pointing out that they are a very small cap company. In which case, one wonders why SPH doesn't simply acquire them wholesale. Will be interested to find out what SPH is planning to do.
Hmm.. How wide selection of fund will help common investors? Most funds that are meant for diversification are available on other platform without this platform fee. I will say most are ignorant and never pay attention to details..
I have a simple thinking:
With stock market getting easier to enter (i.e. More and easier to use online platforms, cheaper comm, smaller lot sizes, availability of ETFs, more personalized services by bankers and IFAs..) will it be in the near future that fund distributors go out of business?
I mean, if you gonna charge a 1-3% sales fee (which usually is higher than stock/etf comm), and also charge for platform/holding fees, and the funds also have mgt/trailer fees etc etc.. There will come a time when tjey will go out of business when people become smarter...
Many benefits of buying a fund in the past are now available on other means...
i.e. Last time buy fund can get exposure, now there are ETFs....
What do you guys think?
With stock market getting easier to enter........
i.e. Last time buy fund can get exposure, now there are ETFs....