Aegon study highlights impact of fund fees and complexity on returns

Aegon examined the risk and return profile of funds from the two largest Investment Association (IA) Mixed Investment sectors and compared those using mainly passive components to those using mainly active ones over five years. It found that multi-asset funds with passive components provide better risk-adjusted returns than those with active components over a five-year period. The main reason for this is that fund charges can erode returns over the long term, having a significant impact on the eventual payout for investors. For example, over 25 years, a £100,000 investment in the F...