Lump Sum Investments - Is Bonus paid for large amounts

M

mercman

Guest
I am curious. I have made a number of sizable lump sum investments in Irish Unit Funds and have since been told by a friend that I should have received an additional percentage to be added to the Investment.

Has anybody heard of this before ??

Thanks for any replies.
 
Quite often a broker or a company can secure or offer a bonus in terms of higher allocation towards the fund, e.g invest€100,000, instead of 3-5% charge, they actually show an investment of €102,500. Of course, you may pay the bonus back in annual charges.
 
Thanks Slim. With one company I received a small (tiny) discount on the annual charges and on the other received nothing - no discount or no bonus. And these are run by sections of a very large Bank.
 
Ask and you shall receive. If you do not ask, as most people don't, the seller will not volunteer to give you more. If you ask ,or indeed threaten to go elsewhere, you may get more. Yo ucannot serve God and money. God forgives and is gentle to all, money is not!
 
I did ask and was told NO. The problem is that the friend who told me showed that he got a Bonus for Investing a smaller amount than I did.
 
Some product providers offer bonus allocations for larger amounts. In addition, individual brokers may offer to reduce their commission which will enhance your allocation further. The latter is, of course, at the discretion of the broker or sales agent.
 
mercman,

It is possible that you may have received 100% allocation and that there may be no exit penalties. You should check the disclosure documentation that you received at the time the money was invested.

Your friend may have received 102% allocation on his investment but he may be hit with exit penalties in the first 5/6 years. Year 1. could be 5%, year 2. 4% etc etc.
 
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