Investors are paying 2.56 per cent in fees annually for advisers and investment manager to run their money, research from Grant Thornton has found.
Data from the accountant showed that someone with £100,000 invested for 10 years would pay 2.56 per cent of their portfolio each year in fees for financial planning and fund charges, reports the Financial Times.
The charges are a drop from four years ago, when the average cost was 2.86 per cent, before RDR.
However, the fees are a concern in the current low-growth market, with the average investor in a growth-focused portfolio getting a 2.3 per cent return in 2015, data from ARC found. This return was after ongoing costs, but did not take into account costs of financial planning or any tax wrappers.
Bertie Gore Browne of Gore Browne Investment Management says consumers “must look at fees very closely, as paying 2 per cent to 3 per cent a year is not justified in a time of low investment returns”.