The true cost of investing is higher than you might think

Keeping costs down is one of the most important things to consider when investing. If you’re not careful, you can blow a big hole in your savings pot. Phil Oakley explains why you may be paying much more than you think.

If you're still thinking of where to put this year's Isa allowance today's the last day to use it or lose it - or next year's, there's no shortage of advice out there.

But have you thought about how much it's going to cost you? Given that costs are the one thing you have any real control over, it's one of the most important things to consider. But like many things in the world of financial services, it's often not very clear.

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Management charge0.75%0.3%1%0.35%
Other expenses0.2%000
TER0.95%0.3%1%0.35%
Commissions/tax0.38%0.1%0.38%0.1%
Interest000.45%Row 4 - Cell 4
Bid-offer spread000.25%0.2%
Total costs1.33%0.4%2.08%0.65%

Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.