Technical Savings and Investments Information

Disadvantages of Investment Funds

(a) Management fees
The professional investment managers running the investment fund on behalf of the investors will inevitably take a fee directly from the investment fund. This is a cost investors could avoid if they manage their own investment.

(b) Lack of choice
Although investors can choose the type of fund they intend to invest in, they have no control over the choice of individual share, or bond which goes into the fund.

(c) Lack of owner’s rights
If investors hold a company’s shares direct, they will have the right to attend the company’s annual general meeting and vote on important matters.  Investors in an investment fund have none of the rights connected with the individual investment in the fund.