Low-charging funds generally offer better value, according to new research.
Fund analyst Fitrovia says Cat-marked funds, which charge a maximum of 1 per cent, have delivered returns on average 4.75 per cent better than higher-charging rivals.
Out of the 2000 unit and investment trusts surveyed only 39 were Cat-marked.
Norwich Union Investment Funds director of sales and marketing Mark Skinner says: “Total funds under management in Cat funds is now £9.29bn compared to £9.26bn last month, a net gain of over £300m. High value charges simply do not represent value for money.”