Property News · September 10, 2016

Index funds help keep your returns on track – with no excessive fees


These tracker funds routinely outperform actively managed ones – and charge half as much. We look at how and where to buy themThe FTSE 100 has jumped by 14% in a dramatic recovery since its post-Brexit dive on 24 June. But once again the cheap “index” funds have given investors the best returns, prompting many to conclude that paying a fund manager to look after your money just isn’t worth it when computers do it better.Year in, year out, low-charge index funds have been beating their more expensive actively managed counterparts. Almost all the difference is down to the fact that index funds charge as little as 0.06% a year, while active funds charge at least 1%, and often a lot more once hidden fees are taken into account. After all, those Porsches and Ferraris have to be financed somehow. Continue reading…

Source : theguardian.com
Read more…Index funds help keep your returns on track – with no excessive fees

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