The investment industry and the media tend to focus on fund performance. But research shows that the most reliable indicator of long-term investment returns is in fact cost.
Expressed as percentages, fund fees appear relatively modest. But, in Part 2 of our documentary, the Nobel Prize-winning economist Eugene Fama warns that the effect of compounding means that, over time, the impact of fees and charges on the value of our investments can be huge.
Journalist Merryn Somerset Webb, Mark Dampier from Hargreaves Lansdown and Gina Miller from the True and Fair Campaign also express concern about overall charges.
The message for the investor is clear: keeping costs as low as possible is crucial to a successful investment experience.