We take away a smaller portion of your gains to cover our expenses.
Here is a comparison of the charges:
Initial spread 3.5% 6%
Annual fee 1% 1.5%
Assume that you invest $100,000 for 20 years to earn an average gross return of 7% per annum.
After deducting the initial spread and annual fee, you will get the following amount at the end of 20 years:
From NTUC Income $309,000
From similar fund $274,000
Difference $ 35,000
NTUC Income gives you 13% more than the similar fund.
Wait! Here are some more facts!
1. Be careful of other funds that have even higher charges, as they give even less to you.
2. During 2003 to 2005, the Global Equity fund of NTUC Income earn an average of 19.2% per annum, compared to an average of 15.1% for 17 similar funds tracked by Standard & Poors.
3. If you have already invested in a high charge fund, you can switch to NTUC Income now, and earn more for your remaining years!