投资基金一定要小心 DSC Fund

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A widow said her husband joined the mutual fund company in late 2011. She agreed to move her RRSP investments there, but felt uncomfortable about doing so.

“He was told by his manager to secure business from family and friends to meet his aggressive initial sales targets. When he passed away suddenly, I couldn’t cope with the thought of working with the person who took over his job,” she said.

“Investors Group told me I could not move my money to another company without incurring $18,000 in deferred sales charges. Now I am utterly trapped. I am about to turn 58 and no longer have the earning potential to make up such a huge loss.”

With deferred sales charges, you pay no commission when you buy mutual funds but you pay later. The longer you hold a DSC fund, the less you’ll be charged when you sell it.

“Investors Group conducted a full review of this complaint. We concluded that the client’s husband had acted appropriately in recommending the DSC fund and it was suitable to her when recommended,” said Ron Arnst, assistant vice-president of the Winnipeg-based investment firm.

“We also found documentation that the client understood and agreed to the investment.”

Lesson learned: Don’t let family ties interfere with your finances. A spouse can die in an instant, but DSC fees can last for up to seven years. Read Fund Facts, which explains what you’re buying, and trust your instincts.