Aminatidi wrote:Finsbury is 0.7 whilst Fundsmith I class is 0.95%
Genuine question, is that 0.25% such a big deal?
I've no dog in the fight as I hold some Fundsmith and some Lindsell Train but I wiped 0.2% off my management costs just by switching to a fixed price platform.
I do take the point, but I'm interested why it should be that big of a deal providing the returns are there to justify holding the fund v doing something else?
Well, everyone is entitled to his opinion, but for me, there's no big deal at all. In some respects, in the round, an investment trust can be more expensive and/or risky when you weigh that often you buy a high octane IT at a premium these days and that the IT is already geared by maybe 20% to begin with (Smith has no gearing). So, the actual underlying real assets you are into buying are coming at quite some cost and quite some risk (IMO). Add to that, many platforms don't charge you anything extra to buy/sell OEICs and also you don't pay the 0.5% stamp duty on every purchase, then it really is very much not a done deal regards costs. It is currently a very fashionable position to take and the media is all over this topic of late which raises its profile. But, well, pay your money, take your choice. Smith will tell you the same, I guess and I am very happy for people who choose to take a different view than I. Without that, there is no need of a forum.