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It&#39s a big gap, says AITC

Investment trusts have lower fund charges than unit trusts, according to the Association of Investment Trust Companies.


Its research shows annual expenses for unit trusts average 1.38 per cent compared with 0.83 per cent for investment trusts.


The trade body, which is responsible for the “its campaign” to promote investment trusts, says the gap is significant.


AITC director general Daniel Godfrey says: “A 0.55 per cent difference in total expenses over ten years on a £10,000 investment between two funds would amount to over £1,300, assuming growth of ten per cent.”

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