Funds News 

Go to the right class to avoid unnecessary fees

Go to the right class to avoid unnecessary fees

Twenty three per cent of private investor money in funds is in more expensive, older share classes of funds that might pay trail commissions to financial advisers, according to research company Fitz Partners. The percentage of private investor assets in more expensive fund share classes in 2013 was over 70 per cent and has been steadily declining over the years. And the average ongoing charge of equity funds' older share classes has fallen too since commission payments to advisers on fund sales were abolished. But older fund share classes are, on average, still 0.59 per cent more expensive than newer share classes.

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