UnaVida | Investment Fund Charges

Investment Fund Charges

The Financial Conduct Authority (FCA) has issued a report recently into the charges made by Investment Funds.

The FCA believes that investors should pay a single charge and that this should include all the transactional and third party costs, that are normally added to the fund management charge.

Passive Fund charges have fallen steadily over the last 10 years but active fund charges have remained high in comparison.

The FCA’s view is that actively managed funds underperform their benchmarks and that because of the high charges imposed means that investors are losing money.

We strongly support the FCA’s stance but wonder why it has taken them so long to expose the fund charge scandal, when it has been obvious for many years that this is a huge problem.

In our opinion it is wrong to categorically denounce active fund management as there a select few that consistently perform above benchmarks. The problem is that many so called “active” funds are not selecting their funds out of conviction but are really index huggers, who are charging high fees for doing nothing.

Registered in England and Wales. Registered Number 5553273.
Registered Address: 8f Millars Brook, Molly Millars Lane, Wokingham, Berkshire, RG41 2AD.

A pension is a long-term investment that typically cannot be accessed until age 55 (57 from April 2028). The level of pension benefits offered could change depending on the value of your investments (and any income they may generate).

The interest rates in effect at the time you begin receiving benefits may also have an impact on your pension income. The tax consequences of pension withdrawals will depend on your unique situation. In later Finance Acts, tax rates, tax bases, and tax relief may change.

The opinions expressed by Ray Best are meant to inform and educate. Before making any investment decisions always take advice that is pertinent to your investment personality and financial situation.

You are aware that past performance will not necessarily be repeated in the future, but you should be aware that persistent poor performance invariably will.

The value of an investment and the income from it could go down as well as up.

The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

UnaVida Wealth Management Ltd. is directly authorised and regulated by the Financial Conduct Authority (440577).

The guidance in this website is primarily aimed at a UK audience and is subject to regulation by the Financial Conduct Authority (FCA).

The Financial Conduct Authority does not regulate tax planning, estate planning, or wills and any form of legal documentation.