Platform fees differ wildly so the same portfolio on two different platforms could vary in value by thousands of pounds within a few years. However, actively managed funds tend to be several times more expensive than low-cost index funds which track the market rather than try to beat it. 5) Don't overpay for index fundsThe cost of index funds has plummeted in recent years. Any two index funds that track the same market should be much of a muchness, so there is no point in paying for the more expensive one. For basic rate taxpayers, pension tax relief would fall by the same amount, so it may make sense to take advantage while – and if – you can.

Source: Daily Mail April 03, 2022 00:57 UTC