IFA fund management costs

zagfles

There are (or certainly were) some fund managers that operated on the basis of performance fees. But they're generally not thought a good idea. Think about it. Say the fund went down, meaning zero fee. What's the incentive for the fund manager? Increase risk - as then he has a better change of ending up in positive territory. It's a no lose gamble. If it goes down even more, who cares as his fee will be zero anyway.

And as above, IFAs aren't fund managers, and I'd be wary of any that tried to sell their services on the basis of fund management. It's the job of fund managers to try to beat the market, not IFAs.