It pays to keep a lid on investment costs

Keeping your investment costs down can make all the difference to the performance of your portfolio. Cris Sholto Heaton explains.

We talk a lot about the costs of investing at MoneyWeek perhaps more than many readers think the topic is worth. After all, picking stocks and funds is the intellectually stimulating part of investment. Trying to keep costs down is more like going around the supermarket working out what brand of washing powder is 25p cheaper this week.

Yet costs matter, as Mebane Faber of Cambria Investment Management demonstrates in a new book* that reviews the long-term performance of a number of popular asset-allocation strategies. His findings show that the difference in performance between the best and the worst strategies can easily be swamped by the impact of costs if investors aren't careful.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.