The top-performing funds are not necessarily the cheapest, according to broker Chelsea Financial Services.
Chelsea looked at the performance of 238 funds in the Investment Association UK All Companies sector over five years, and found four of the top 10 performers had an ongoing charge of greater than 1 per cent. Even with their higher charges taken into account these four funds outperformed the three cheapest funds, which have an ongoing charge of 0.06 per cent, by between 155 and 238 per cent.
The top-performing fund over five years was Old Mutual UK Dynamic Equity (GB00B1XG9H11) with a return after charges of 122.3 per cent. It has an ongoing charge of 1.07 per cent.