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My guess: they are eating the management fees on an indexed fund that they are just managing themselves. With enough volume they can offer other fee-ful funds l
by mmastrac 12y ago
My guess: they are eating the management fees on an indexed fund that they are just managing themselves. With enough volume they can offer other fee-ful funds like the other guys and cover the costs. It's just a loss leader.
I'm assuming it's not a Ponzi scheme, but obviously could be wrong.
If everything is up-and-up this is actually kind of cool. I've been disappointed at the lack of decent investment options for low-income savers.
- Ronsenshi 12y agoIf it's not too private, what would be an ideal amount (min-max) for you to invest as a low-income saver? Furthermore, maybe it would be better to handle immediate expenses instead of trying to save every penny which wouldn't have any tangible returns anyway?
- mmastrac 12y agoI'm not a low-income saver myself, but I see lots of low-income savers that just can't hit the minimums. I really would love to see a fee-free option for them that they can drop $5 into here and there and have it add up.
- saryant 12y agoSome Vanguard index funds have a $1000 minimum and you don't have to risk your money with a (frankly) sketchy investment like this.