Sorting out my pension

This may seem really boring but I am trying to decide how to set up my pension and just read a really interesting article on the future of fund management. I’ll be setting up a SIPP to buy ETFs…. ETFs are traded like stocks, but are like trackers funds, in that they give a weighted average of whatever class they are invested in. I.e. so if you want to track the basic FTSE100 then buy an ETF in it and you get the same growth.
The article states you cannot rely on past performance and need to concentrate on costs to maximise growth. i.e. If you want exposure to a certain asset class there will be an ETF for you and you don’t need to pay a fund manager loads of $$ to buy into it. Historically the average fund has always underperformed the basic market index so unless you are an insider and know which fund managers are picking the right stocks don’t bother.


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