Just found out for over 15 years my parents have been paying 4% fee yearly, for a mutual fund holding.
It has a guarantee that you would never lose more than HALF of your investment (which is useless guarantee since a chunk of the fund is in low vol assets with low returns)
This was sold by a TD waterhouse advisor.
The fund returned 4% per year on average over the past 15 years, after the fee.
from 2009 to present, the s&p500 went up roughly 850% where their investment is only up roughly 90%.
I feel like a 4% fee should be illegal, and seems they have made money whether the investment is up or down, and when they make it when its down it hinders the upside in the following years significantly.
Question is, can they be sued? my parents were taken to the wringer on this. I am furious.
Submitted August 22, 2024 at 01:08AM by Tenkinreddit https://ift.tt/rAReDQB
