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Best of Money Clinic: Investment masterclass — the cheapest way to invest

Money Clinic with Claer Barrett

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The Cost of Investing in Index Funds

The big difference between active investing and indexing is that one is far more expensive than the other. Once you factor in fees and charges, the average index investor has to outperform the average active investor. The evidence shows that around 1% of funds outperform on a properly cost and risk adjusted basis.

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