Wraps and master trusts

Wraps and master trusts can provide convenience and choice, but beware high fees and adviser kick-backs.
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07.How to save thousands in fees

Don’t pay the full entry fee. It can be as high as 5% or more of what you invest and can go to the financial planner or adviser. But this is negotiable. Wrap and master trust application forms often include a box advisers can tick to rebate the entry fee. Ask them about it or compare what different advisers will charge you.

Keep bargaining. Trail commissions and ‘adviser service fees’ can sometimes be rebated or ‘dialled down’ by advisers.

If you already know the platform you want consider using a discount broker — they’ll often refund the full up-front commission and sometimes part of their trail.

If you don’t require advice (or you’re prepared to pay for fee-for-service advice separately) and you’re interested in investing direct, it’s worth comparing these and other discount brokers’ fees and services.

TIP: some discount brokers charge a fee to mail Product Disclosure Statements to you.

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