They base their fees on a percentage of clients assets under management.
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They base their fees on a percentage of clients assets under management.
Other Answers
There are 10 times a lot more businesses trading firms that there are companies. This has led to inflated prices. Ideally you invest in businesses that do properly and get dividends. Even so a lack of regulation has led to the only way to make income is to acquire stocks at a low price and sell them at a high price. These are like balloons they blow up for a although and then pop. Cash managers are the only ones that actually make funds. Not the investors whos funds they use. They get fees each time a transaction is produced so it is in their best interest to do well so much more individuals give them income. Inevitably although the market usually crashes and the ceos walk away with millions even though our funds that we were forced to invest via iras is disappeared. You really should watch the movie Inside Job
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