Fundsupermart (FSM) has recently announced that they would be charging their users a platform fee with effect from 1st May 2010. The charges will apply to investments made using cash or SRS. Increasing operating costs has been cited as one of the reasons for imposing the fee.

Under the new pricing structure, investors would expect to pay an additional 0.5% p.a. for equity funds and 0.2% p.a. for bond funds. To make up for the platform fees, upfront sales charges would be reduced.

The new pricing structure is summarised in the table below:

Sales Charge
Type of PurchaseSales Charges
Equity funds – General Investors (below S$75,000)1.50%
Equity funds – Sliver Investors ($75,000 to $249,999)1.25%
Equity funds – Gold Investors ($250,000 or more)1%
Money Market, Short duration bond0%
Selected Fixed Income Funds0.1% or 0.2%
All other Fixed Income funds0.75%
Switching (same tier)0%
Switching (lower tier to higher tier)0.75%
Switching (0% sales charge fund to any fund)Prevailing sales charge
Platform Fee
HoldingsPlatform Fee
Equity Funds Holdings (Cash/SRS only)*0.125% per quarter
Fixed Income Funds Holdings (Cash/SRS only)**0.05% per quarter
All CPF HoldingsExempted

All fees and sales charges quoted are exclusive of GST.

* Platform fee for equity holdings above $500,000 will be charged only 0.1% per quarter and equity holdings above 1 million will be charged only 0.075% per quarter (incremental basis).

**The quarterly platform fee of 0.05% for the cash fund will be waived until February 2011

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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