My bank is offering me a fund: the questions to ask before signing

"What does it cost each year, as a percentage and in cash on my amount?" Ask for the total annual cost in writing, not just the management fee: transaction costs and other charges sit inside it and often go unmentioned.

"Is there an entry or exit charge?" and "How long must I hold it to avoid a penalty?" A product that punishes you for leaving before five years is buying your immobility — and that tells you something about the product.

"Does the bank earn anything if I buy this rather than something else?" The answer is almost always yes, and it is legal: many funds pay part of their fee back to whoever sells them. It isn't a scandal, but it explains why you are being offered this one.

"Is there a cheaper alternative that does the same thing?" If the answer is no, ask to see that in writing. If it is yes but "less suitable for you", ask why — and listen for whether the explanation is about you or about the product.

"What happens if I need this money in two years?" It tests two things at once: how liquid the product really is, and whether the person offering it has understood your situation or is simply placing what they have to place.

And one rule: never sign in the same meeting where it is offered. Ask for the documents, take them home, look at the total annual cost. No serious product expires in forty-eight hours, and anyone who says otherwise is telling you something.