Introduction to the Video

Fees and charges are critical factors to consider when selecting a fund, as they remain the single most reliable predictor of future fund performance. In this video, Jeffrey Ptak, Morningstar’s Global Director of Manager Research, explains why costs have become even more significant, despite a general decline in fund fees.

Research shows that while fees are converging towards lower levels, the performance differences between funds before fees have narrowed even faster. This means that cost disparities now play a larger role in determining the differences in net returns between funds. Simply put, lower-cost funds are more likely to deliver better returns.

The video also highlights the challenge of identifying all the costs associated with investing, as some fees may be hidden or difficult to calculate. To navigate this, working with a knowledgeable financial adviser who understands the intricacies of fund fees can provide a significant advantage.

If you want to maximise your investment returns, this video offers valuable insights into why scrutinising fees remains as important as ever.

Disclaimer: This video does not constitute financial advice. We recommend that you speak to a qualified financial planner for advice tailored to your individual circumstances and goals. Financial markets may go up or down, and you are not guaranteed a return on your investment. Past performance is not necessarily a guide to future performance.