Investors' constant battle

The F word is the dirtiest word in finance. The F word = fees. Investors want to pay as little as possible and managers are constantly battling to justify them. It’s a delicate subject. A typical listed investment company (LIC) might charge a management fee of around 1%, while for an exchange traded fund (ETF) the fee might be a fraction of that. Pretty reasonable isn’t it? The managers are putting their years of experience to work for a measly 1%, while you try forget the market exists. As John Addis explained last week, though, you need to think of the fee as a portion of your return, not of your investment, which bumps it up to more than 20%. (VIEW LINK)