So, what does profit-to-member really mean?

Here’s where it gets good. Generally, a profit-to-member fund returns profits to members, not shareholders or anyone else. Since these funds were established for members, the members’ needs always come first.

Profit-to-member funds typically charge lower fees than retail funds and these fees are generally designed to cover the costs of running the fund.

Finally, profit-to-member funds are generally known to deliver better returns than retail funds (although it’s always important to bear in mind that past performance is not an indicator of future performance).

What about retail funds?

A retail fund is for-profit. While these funds deliver returns to members, they also pay out dividends to shareholders.