Half of investors are not sure about all the fees they are being charged by their wealth manager, research carried out for Netwealth by YouGov shows.
Among investors with at least £50,000 to invest, 37% of those surveyed only knew “most” or “some” of the fees and charges they are paying for wealth management services. Meanwhile, 13% are unclear about any of the fees and charges they are paying.
Source: YouGov 2018
The research also shows that investors no longer tolerate hidden fees, with 72% stating that “transparency around fees and charges” is now the most important factor when choosing a wealth manager, followed by personal trust (67%) and good investment performance (60%).
Why knowing how much you pay in fees matters
Some investors may believe that knowing about “most” of what they pay in fees and charges is acceptable. And intuitively you may think that a single percent or a fraction of a percent would not amount to much.
But even a small difference in fees – or minor charges added over time – can make a significant difference to the value of your investments, or the enjoyment of a goal such as your retirement.
As we explain in this article choosing a wealth manager with lower fees can meaningfully affect the number of comfortable years you could enjoy when you retire – at least a decade or more depending on how much you invest and when.
So it’s worth making a point of finding out exactly how much you pay in fees, and doing something about it if they are not acceptable.
Although this may be a task in itself: the YouGov survey also revealed that 44% of investors believe they currently have no immediate way of telling how much they are being charged by their existing provider.
Please remember that when investing your capital is at risk.
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,014 adults, of which 798 had £50k+ in investable assets, and were defined as an ‘investor’. Fieldwork was undertaken between 24th - 27th May 2018. The survey was carried out online.