After your financial plan has been set up by your adviser you might want ongoing reviews, investment advice or administration services. Sometimes this means your financial adviser now sees themselves as an investment adviser – like the fund manager who invests your super for a super fund. 

This may mean they adopt the adviser's fee model, including a change to reflect a percentage of your account balance or funds under management (FUM). However, there is a big difference between financial advisers and fund managers. 

A financial adviser is not a fund manager
Your adviser doesn't make investment decisions like fund managers. They just recommended a managed fund that is then managed by the fund manager. 

To provide some value, and justify charging you FUM fees, a financial adviser may introduce Master Trust or a Wrap platform to manage your investments. 

Generally, unless you have significant investments or complex needs, be cautious of paying financial advisers FUM fees. Consider whether a basic diversified managed fund or high performing super fund will better meet your needs and reduce your fees.

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General advice disclaimer
This is general information only and does not take into account your personal objectives, financial situation or needs. You should assess whether the information is appropriate for you having regard to your objectives, financial situation and needs and consider obtaining independent professional advice before making an investment decision. If information relates to a specific financial product you should obtain a copy of the product disclosure statement for that product and consider that statement before make a decision whether to acquire the product.

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