The most important factor when selecting a unit trust is the annual fee of the fund. It is no accident that funds with the lowest annual fees are regularly near the top of the performance rankings over long periods of time. Fees are certainly not the only factor that will determine performance, but they are important.

While unit trusts provide a nice window to show the impact of costs, we should not ignore other types of investments as they are equally affected by fees. If it is true that we are going to be afflicted by low returns for the next few years, it is worth asking if your adviser is doing enough to reduce total investment fees.

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