QUOTE(hsyong @ Mar 11 2020, 09:24 PM)
Sales charge is one time only right? That means deduct sales charge only for the first year's returns.
QUOTE(hsyong @ Mar 11 2020, 09:29 PM)
Ah, yes, that's a good way of putting it.
QUOTE(j.passing.by @ Mar 11 2020, 09:27 PM)
The sales charge or service charge is only one time.
If you hold the fund several years, you 'amortized' it over several years.
Yes, it charge once.
If you invest 1 year in equity fund, if the fund earns 10%, you earn 4.5% only. If the fund lost 10%, you will loss 15.5%.
If you invest 10 years, if the fund earn 60% over 10 years, ypu earn 54.5%, which is 5.45%p.a, not 6%. If the fund earn 30% over 10 years, you earn 24.5%, which is 2.45% p.a, not 3%.