InvestorBee platform fee comparison reveals that investment fees are getting more transparent, but warns consumers to make sure they shop around. UK) 4 October 2012
InvestorBee, the free-to-use, independent website, which helps consumers make fact-driven investment decisions analysed the fees charged by eight of the largest UK investment platforms and found that consumers could spend almost double in annual fees if they did not adequately research platform fees before investing their money. Over 10 years, this could add up to an extra £1,030 in fees on a £11,280 (max ISA allowance) investment.
InvestorBee compared the Total Expense Ratio (TER), charged by the eight largest UK platforms, to invest the ISA allowance of £11,280 in each of four investments, based on different levels of risk.
Key findings are as below:
Jonathan Hoar, VP, Consumer Products, InvestorBee, commented: “Statistics from our recent platform fee analysis are very enlightening. Unwary investors may find themselves paying more than double the best available option, when it comes to fees. With the implementation of RDR just around the corner, platforms, fund managers and IFAs will have to make their fee structures more transparent. This is the perfect time for consumers to arm themselves with information on how to invest wisely. A lack of awareness on the consumer’s part, especially going forward, can lead to destruction of value in the money invested.”
InvestorBee has supplemented their platform-fee analysis with a ‘fees table’ that defines the basic fees or charges that consumers can expect when trading over these eight investment platforms.
Hoar added: “InvestorBee is all about the consumer. To offer consumers a flavour of the types of fees they can expect from platforms, we have created a ‘Platform Fees Table’, which they will hopefully find useful. This is a useful starting point but fees will vary based on your specific preferences and choices, so we cannot overstate the need to shop around.”
InvestorBee looked at the average Total Expense Ratio (TER) for the lowest cost passive components for each asset class in the InvestorBee risk-graded benchmarks on each platform*, and added the platform fee and any other relevant platform-related charges (e.g...The analysis assumes that the customer purchasing the strategy is a new customer and does not hold an account with the platform in question.
*Each platform offers a different range of funds, so across each platform, the selected funds may differ for each strategy. All platform-related charges are sourced directly from the platform, online. All TER numbers sourced direct from the platform (or Financial Express if unavailable).
InvestorBee, powered by DCisions and launched in December 2011, is a website that helps consumers make informed, fact-based decisions about their savings and investments. It analyses data from more than one million UK investors, over 30,000 financial products and over 1,000 sources of professional advice to track the results real investors are achieving. For more information on the site, visit http://www.investorbee.com.
For further information please contact: info (at) investorbee (dot) com.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/10/prweb9930139.htm