Why investment trusts are winning the low-cost war

Recent weeks have seen the raising of annual management fees on certain open-ended funds by a number of leading fund providers. While it would probably not be economic for those already invested in these funds to sell them on the basis of these increased fees as they would probably incur costs of more than they would save by selling and reinvesting elsewhere it may make new investors think twice about where they put their money. Investment trusts have long had a cost advantage over open-ended funds, with no upfront charges other than stamp duty on purchases, and annual management char...