I read in The Telegraph last week that pension fund investors are belatedly finding out after many years that management fees of their investment managers have soaked up about half of the investment returns in their pension fund. That shows that even intelligent people with money to invest failed to pay attention to compound interest lessons in primary school and didn't understand their investment advisers' percentage take in fee systems.
About thirty years ago,the solution to high active manager fees was invented-index funds in the US,known as index tracker funds in the UK,that weigh investments to follow the same weighting of shares in popular indexes such as the Dow Jones or the Footsie. Oddly,they outperform managed funds for two reasons-their wide diversification across a broad index of shares picks up high returns available on small to middle size companies that most active fund managers haven't time to research;and their selection of shares through computerised software that tracks particular indexes is a very low cost business model that allows very low discounted management fees. The leader in low cost index funds and a more recent variation of them known as Exchange Traded Funds (ETFs) is Vanguard in the US. It happens to have Irish domiciled funds charging extremely low fees https://www.vanguard.co.uk/uk/mvc/in...s/etf#fundstab
For all I know, there may be many other funds offering similarly low fees.
Index tracking works best in broadly diversified stock market indices,unlike the bank dominated Irish market in the past. The more that active managers influence prices,the less an index tracker fund loses from overpriced shares and it gets a free ride on investment research costs.In developing markets,there is evidence that managed funds do better than market indices when typical lack of research results in mispriced shares,giving an advantage to research-based share selection.