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Originally posted by 5corpio
Savers are unwittingly losing thousands of pounds because hidden charges undermine their investments, one of Britain’s biggest financial companies has admitted.
Fidelity International has become the first big City institution to say publicly that investors should be warned about a whole range of hard-to-spot fees when putting money in stockmarket funds.
The company, which invests billions of pounds for more than 660,000 British customers, told The Daily Telegraph that the headline annual fee on one of its popular funds was only a third of the actual cost. As a result, the typical expense of an Individual Savings Account is hundreds of pounds more than most consumers realise, and thousands of pounds more for larger investments.
Fidelity is calling on the industry to publish “simple, transparent” fees that will show the “on the road” cost of different funds, rather than the far lower annual management charge, which is all that is disclosed by most companies.
“Fees reduce the value of your investments so everyone should be clear about what they are paying and what they are getting in return,” the company said in a statement.
The admission follows an investigation by The Daily Telegraph last year which found that £7.3 billion was being “skimmed off” annually by City bankers and fund managers in hidden...........Click HERE to read more on this story
Fidelity International has become the first big City institution to say publicly that investors should be warned about a whole range of hard-to-spot fees when putting money in stockmarket funds.
The company, which invests billions of pounds for more than 660,000 British customers, told The Daily Telegraph that the headline annual fee on one of its popular funds was only a third of the actual cost. As a result, the typical expense of an Individual Savings Account is hundreds of pounds more than most consumers realise, and thousands of pounds more for larger investments.
Fidelity is calling on the industry to publish “simple, transparent” fees that will show the “on the road” cost of different funds, rather than the far lower annual management charge, which is all that is disclosed by most companies.
“Fees reduce the value of your investments so everyone should be clear about what they are paying and what they are getting in return,” the company said in a statement.
The admission follows an investigation by The Daily Telegraph last year which found that £7.3 billion was being “skimmed off” annually by City bankers and fund managers in hidden...........Click HERE to read more on this story