Most people who invest in passively run tracker funds (which simply track an underlying market) do so because the management fees are lower than for actively managed funds (which try – but often fail – to beat the market).
But if you’re not careful, the fees your broker or fund platform charges to hold your tracker funds can outweigh the benefits.
This matters right now, because the rules on such charges are changing. Fund platforms have historically made their money from commissions paid out of the annual management fees on active funds. This is being banned by the regulator.
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