There is one structural problem with ALL funds/LICs: they make their management fees on YOUR capital. That is, they don't have to work hard to get a very good income.n On tope of that, they use every trick in the book to report very good growth results - results that never seem to translate into the same income/gain for the investor. Like many in here I've tried them and can do so much better myself. But you have to like the game!
There are a few funds around that only charge management fees above a hurdle rate. Those fees are very high (10 - 25%) but at least they are truly incentivized to turn a good profit. These are usually small boutique funds so either not readily accessible or small enough to cause the investor to worry.
