Leaving a bitter taste! When cheaper doesn’t always mean cheaper…

…and hidden fund charges emerge

According to research carried out by The Telegraph Money, investors returns have been hit by the volatility in the market during the pandemic. This resulted in a surge of buying and selling which has particularly affected those investors who invested in tracker funds at the cheaper end of the market. Generally, these have a low headline rate, so at first glance appear to be attractive.

However, what has become clear over the past year is that this surge in buying and selling has revealed the associated additional costs which aren’t immediately obvious. These less obvious charges are often inherent with cheaper tracker funds and have led to a gap between the headline rate and what customers are actually paying.

There is an alternative. Seeking independent financial advice is always a good idea, particularly when it’s from a local firm. Here at Berkshire IFA, we have always focused on long-term performance, so our portfolios by their very nature are less susceptible to short-term market volatility. They are therefore more predictable and transparent in terms of costs. As has been illustrated by events last year, in terms of investment platforms cheapest isn’t always better… and an individual investment strategy is both more appropriate to your needs, and less prone to surprises thrown up by volatile markets.

To find out more contact us on 0118 334 3500, or by emailing us at [email protected] and we will be in touch.