Check Your Funds and Their Charges
Check Your Funds and Their Charges
Are you paying too much without realising it?
Many people invest their money and then simply leave it alone, assuming it’s all working efficiently. But here’s the truth: high charges and underperforming funds can quietly reduce your returns, leaving you with less than you might expect at retirement.
A little attention now has the chance of making a big difference later.
Why fund charges matter
Investment charges aren’t just a small fee — over time, they can seriously impact your wealth:
- Compound effect: Even seemingly small annual charges of 1–1.5% can reduce a £100,000 investment by tens of thousands over 20–30 years.
- Hidden layers: Some funds charge management fees, platform fees, or performance fees, which can add up.
- Performance vs cost: High charges don’t always guarantee better returns. You could be paying more for less.
Regularly reviewing your funds ensures you’re not leaving money “on the table.”
Worked Example: How Charges Affect Your Investment
Let’s imagine you invest £100,000 with an average annual growth of 5% before charges. We’ll compare three scenarios with different annual fund charges:
| Investment Period | Low Charges (0.25%) | Medium Charges (1%) | High Charges (1.5%) |
| 5 years | £112,800 | £111,900 | £111,200 |
| 10 years | £126,200 | £122,000 | £119,300 |
| 20 years | £159,000 | £144,900 | £136,900 |
Key points:
- Over 5 years, the difference seems small — just a few thousand pounds.
- Over 10 years, medium vs high charges reduce your returns by nearly £5,000–£6,000.
- Over 20 years, the impact becomes significant: high charges cost you over £20,000 compared with a low-cost option.
This example shows how small differences in annual charges compound over time, potentially leaving you with tens of thousands less at retirement.
How to take control
- Review charges: Check the total cost of each fund, including management and platform fees.
- Assess performance: Compare your funds against similar options and benchmarks.
- Consider alternatives: Low-cost index trackers or diversified funds may provide similar or better performance at a fraction of the cost.
- Seek professional guidance: An adviser can review your portfolio, highlight where charges are eating into your returns, and suggest smarter options.
Practical takeaways
- Don’t ignore your statements: Even a brief annual review can uncover significant savings.
- Check growth after charges: Look at net returns, not just headline performance.
- Rebalance when needed: Adjusting your investments can reduce risk and improve long-term growth.
- Ask the right questions: “What am I paying?” and “Am I getting value for money?” are simple but crucial.
Final thought
Money invested without oversight can quietly underperform and reduce your future wealth. By reviewing your funds and their charges, you take control of your financial future — ensuring every pound works as hard as possible for you.
If you’d like a professional review of your investments to make sure you’re not leaving money on the table, I’d be happy to help. A small step now could add significant value over the years.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
Corcillium Wealth Management is a trading name of 2plan wealth management Ltd which is authorised and regulated by the Financial Conduct Authority. It is entered on the FCA register (www.fca.org.uk ) under reference 461598. Registered office: 2plan wealth management Ltd, 3rd Floor, Bridgewater Place, Water Lane, Leeds, LS11 5BZ. Registered in England and Wales Number: 05998270
Approved by 2Plan Wealth Management Ltd on 09/10/2025.