NSSC Blog: Before You Invest
We continue to get questions from investors regarding investment fees. The latest question was about loads. Specifically, one reader wants to know what a load is. We’ve outlined a few different kinds of loads in previous posts, but we’ll go through them again so you can get the full low down on loads all in one place.
Last week we talked about RESPs and that led a reader to wondering what happens to the money in an RESP if their child doesn’t go to college or university? It’s definitely a possibility. Some parents start funding their RESP before their child is walking. Who knows what they might be doing 18 years down the road?
If this situation does arise then you could have four options to consider:
There was some media coverage on RESPs this week leading to some of our readers wanting more information on these type of investment accounts.
Last week Facebook made business news headlines after a colossal decline on the New York Stock exchange saw its share price fall by nearly 20 per cent in one day. Throughout the media coverage and the headlines two words that were continually used were “market cap.” So, what is market cap?
Last week on Throw Back Thursday we reshared our old blog post on Know Your Client (KYC) suitability obligations for advisers. In the post it briefly mentions Know Your Product (KYP) obligations. That led to one of our readers wanting to know more about KYP.
Our last two blog posts have focused on investment fees, specifically embedded commissions and deferred sales charges (DSC). In both posts we mentioned management expense ratios (MER). Apparently when we mentioned them we should have gone into greater detail about them, as that’s what investors have asked for this week.
You may have heard the term embedded commission in the news recently. Following the release of CSA Notice 81-330, embedded commissions have been the talk of business and investing news programs and online, through news sites, social media and investment forums. The discussions and talks are helpful because it makes sure investors are informed about what is happening in the industry.