Cost remains the key determinant for financial advisers when choosing between fund of funds (FoFs) and managed portfolio services (MPS), according to research from Downing Fund Managers.
The study found that 30% of advisers prioritise the higher fees associated with FoFs over client risk profiles when deciding between recommending FoFs or MPS. Downing said that while FoFs offer greater diversification and can be more suitable for clients with lower risk profiles, cost appears to be the dominant consideration. Just over a quarter (26%) of advisers cited client risk profiles as the main factor in their decision-making process, with 24% selecting performance, and 22% choosing a client's preference for transparency and control as their key concern. Tax implications ran...
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