I am seriously considering Ibbotson managed mFunds using Nabtrade, but it looks like buying (buy spread + brokerage) is going to be incredibly expensive.
The main advantage through NABtrade appears to be ease. Because you are ready to go with your trading account and all your investments are in one place. The disadvantage is the cost....!
It's mFunds, easily settled through CHESS and normal channels or lengthy application forms and back and forth with other forms to set up another bank account and platform through the fund manager.
For example $100k purchase of most mfunds through NABtrade (or most other brokers) will mean the fund manager taking about 0.15% (or $150) in the buy spread and then NABtrade takes a further 0.11% (or $110) in brokerage (Total of $260). Then we have the ongoing MER of around 0.80%. Then we have the same again with the selling process, another $260, roughly speaking.
Seems a bit steep to me.
All roughly speaking, but are these figures about right, does anyone know through experience. and;
Does anyone have any other ideas to save on brokerage, or;
Perhaps I should look at index ETF's.?
