How to avoid the 'fees iceberg' when investing in tracker funds

Changes to the fees charged by investing platforms could leave investors in passive funds at a disadvantage. Paul Amery explains.

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.

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Paul Amery

Paul is a multi-award-winning journalist, currently an editor at New Money Review. He has contributed an array of money titles such as MoneyWeek, Financial Times, Financial News, The Times, Investment and Thomson Reuters. Paul is certified in investment management by CFA UK and he can speak more than five languages including English, French, Russian and Ukrainian. On MoneyWeek, Paul writes about funds such as ETFs and the stock market.