More than a third of investors would not pay more than 1 per cent for an active UK equity fund, while more than a fifth wouldn’t pay more than 0.75 per cent, research from FE showed.
The research from FE Trustnet of 2,637 advisers and investors highlights that those that want to pay less than 0.75 per cent in OCF only have access to 9 per cent of the IA UK Companies, IA UK Equity Income and IA UK Smaller Companies sectors.
For those that don’t want to pay more than 1 per cent, around 30 per cent of the funds in the three sectors are ruled out.
Among those more expensive funds are the Old Mutual UK Dynamic Equity, Trojan Income and Standard Life Investments UK Equity Income Unconstrained funds.
The research found that 21 per cent of those questioned wouldn’t pay more than 1.25 per cent while 21 per cent would pay 1.25 per cent or more.