Application forms from the 2020 DIRECTINVEST website contain our dealer stamp for entry fee and commission rebates. The type of rebate we offer depends on the type of commission paid by the fund manager. Rebates vary from product to product and we will disclose this to you on the product web page.
Entry fee rebates
2020 DIRECTINVEST offer 100% rebate entry fees on managed funds, super and pension funds. In most cases, the fund manager will waive the entry fee or credit you with the extra units equal to the 4%-5% commission charge that would otherwise be paid to 2020 DIRECTINVEST as an upfront commission.
An entry fee is an upfront fee deducted from your initial investment and any additional investments including any regular investment plans. Entry fees range from 4%-5% and is normally paid to a financial adviser or referring broker as an initial commission. (The fee is usually retained by the where you invest directly with the fund manager).
How the entry fee rebate works
|
|
Investing via financial adviser |
Invest directly with fund manager |
Invest with
2020 DIRECTINVEST |
| Initial Investment |
$10,000 |
$10,000 |
$10,000
|
| 4% Entry Fee |
$400 paid to adviser |
$400 retained by fund manager
|
Nil - 100% rebated as additional units
|
| Amount Invested |
$9,600 |
$9,600
|
$10,000
|
Sales commission rebates
2020 DIRECTINVEST offer up to 80% rebate on sales commissions. Rebates are most typically paid in the form of a rebate cheque. A sales commission is paid to a financial adviser or fund broker for recommending or referring your investment to the fund manager. Sales commissions range from 2%-10% of your initial investment amount and are paid from the fund manager's own sources.
How the sales commission rebate works
|
|
Investing via financial adviser |
Invest directly with fund manager |
Invest with
2020 DIRECTINVEST |
| Initial Investment |
$10,000 |
$10,000 |
$10,000
|
80% rebate of 4% sales commission
|
N/A - $400 paid to adviser |
N/A - $400 retained by fund manager
|
$320 cash rebate
|
| Amount Invested |
$10,000 |
$10,000
|
$10,000
|
Cost of investment
|
$10,000
|
$10,000 |
$9,680 |
When are rebates paid?
Entry fee rebated as additional units are paid at the time of investment as the fund manager will process the rebate automatically.
Upfront commission rebates vary depending on the investment fund. Close-ended investment funds will usually pay commissions 4-6 weeks after the offer closes. Commissions for ongoing investment funds are generally paid the month after an investment is made. 2020 DIRECTINVEST will post rebate cheques within 2 weeks of receiving the commission payment. Please
contact our office when you have made an investment so that we can ensure the correct rebate is issued.