Investment & advice fees - do you know what you're paying for?

Story



Often, investors are so caught up in how their portfolio is performing that they can overlook something pretty crucial: what they’re paying for and how much.

As markets struggle to find a stable footing and future investment returns are expected to be lower than they have been in recent history, the spotlight is firmly on the true value of advice – and its cost. Similarly, as the Financial Conduct Authority is closing in on the fairness of investor fees, there is a greater impetus to tackle fee transparency as a priority.

In light of this we carried out research on the fees landscape and the future of the advice market* to truly understand investor and adviser sentiment around this. We asked the questions no one is asking: How well do investors understand the fees they pay and the value they get? Do advisers feel comfortable discussing fees and charges?

The result was an in-depth report which looks to answer not only the questions above, but to help educate investors and advisers on the true value of advice, and to empower both parties to ask the right questions.

The guide at a glance

The value debate

  • 41% of investors are unaware of the impact of platform fees on their investments. In particular, they underestimate the impact of platform fees on a 25-year investment by more than £5,000
  • Nearly a quarter (23%) of people with personal savings or investments of more than £750,000 are not aware of how fees eat away at their investments.

Educating investors – 61% of investors believe it is the advisers’ responsibility to educate them on fees.

The outlook - 79% of advisers expect further consolidation to place greater focus on charges and the need for transparency going forward.

Downloads

Full report

Executive summary

For media enquiries: email afhwealth@teamspirit.co.uk or call 02073 607 878

For general enquiries email marketing@afhgroup.com or call 01527 577 775

*Research conducted by Opinium on behalf of AFH Wealth Management.

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