I finally go with the one and only index fund here. I got an offer of 1% subs fee, and 0.36% management fee. Well i think it’s better than nothing, since i’m a newbie investor. For the ETF, bad news…since my broker didn’t even trade them because it’s not liquid.

But the only thing that makes me relief is, i finally make the first step to invest. That’s the most important thing beside the fees of course. ^_^

In your case, the higher expenses definitely make it harder for your money to grow. You many have to do some math and see if putting together a portfolio of individual stocks is a better option or not. For long-term investing, I can certainly see this as a viable option, because 3% per year is very expensive.

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There’s only 1 index fund where i live (INA), and it only have 30 large cap stocks instead of covering the whole market. It also have 1-2% subscription fee and 0.3% management fee. I have other actively managed mutual fund choice, with 0% subs fee and 0% redemption fee after 1 year. But the managment fee is 3%/year and custodian Bank fee 0.22%/year.

We also have 1 stock ETF here, with 40 large cap stocks. But since ETF is a new thing here, some people say that it’s not liquid.

This is the first time i dipped my toes into the stock market, so i’m a little bit nervous here. I’m afraid making the wrong choice. Since now the market seems on a BIG sale, i think it would be a great idea to invest for the first time since i’m still at my twenties.

Every PF bloggers always writes about the great Index fund and i’m really interested about it. But i’m afraid it wouldn’t be the best choice for me now with the high subs fee. What do you think?