When investing, one of the few things you can control is how much you pay in fees. While a difference of 1% per year may not sound significant, over decades it can have a dramatic impact on your wealth.

Imagine two investors who each start with £100,000 and both achieve the same 7% annual investment return before fees.

• Investor A pays 1.2% a year in fees, leaving a net return of 5.8%.
• Investor B pays just 0.2% a year in fees, leaving a net return of 6.8%.

After 25 years, the investor paying the 1.2% annual fee has a Portfolio Value of £409,000, Whereas the investor paying 0.2% has a portfolio of £518,000

That's a difference of around £109,000, simply because one investor paid lower fees.

This is why low-cost index funds are so popular. Every pound you save in charges remains invested, allowing compound growth to work harder for you over time.

While fees aren't the only thing that matters, they are one of the few aspects of investing that you can control. Choosing a diversified, low-cost fund can help you keep more of your investment returns over the long term.

Key takeaway: A seemingly small 1% difference in annual fees could leave you with more than £100,000 extra over 25 years on a £100,000 portfolio.