Why risk-rated fund of funds might just be a win-win

With the Retail Distribution Review (RDR) framework now in place, consumers will become increasingly aware of the costs and charges for financial advice. For advisers, the ‘unbundling’ of fees will also bring about greater scrutiny of individual costs, such as platform fees, fund charges as well as their own fees. Advisers have increasingly been looking towards the cost-effectiveness of indexing funds, reasoning that there are many instances in which low-cost access to a market is more efficient than trying to consistently identify active managers that will outperform. In many cases, ...