Cheap UK equity income funds outperform more expensive rivals

The cheapest UK equity income funds in the market are delivering much better long-term returns than some of their more expensive rivals, data compiled for Investment Week reveals

At a time when pricing structures are coming under increasing scrutiny, FE has compiled a list of funds in the IMA UK Equity Income sector with the highest and lowest ongoing charges to compare their performance. The data reveals five out of the seven cheapest funds in the peer group beat the sector average over five years, while six out of seven of the ten most expensive funds significantly lag the average. Among the standout lower priced funds in performance terms are Royal London UK Equity Income and Lazard UK Income, which have ongoing pre-RDR charges of 1.28% and 1.34%, respectiv...