Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

4 Key Factors Before Investing in Funds

13 Jun 2026 · 1 min

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In this concise investor‑advice segment, Ndubuisi 'Andy' Egwim outlines the four primary criteria he checks before committing money to a fund. First, he assesses what the fund tracks—whether it follows a global index, a specific country, or a sector such as technology or healthcare. Second, he examines cost, focusing on the Total Expense Ratio (TER) or Ongoing Charges Figure (OCF) and any platform fees, emphasizing that even small fees compound over time. Third, he considers the fund’s dividend handling, distinguishing between accumulation (reinvested dividends) and distribution (paid‑out dividends). Fourth, he evaluates tax efficiency, recommending the use of tax‑advantaged accounts like an ISA or SIP. Andy concludes by warning against over‑searching for the perfect fund, urging investors to prioritize consistency, tax efficiency, and a long‑term perspective once a suitable fund is identified.

Chapters

There are 4 things I look out for before I invest in a fund. I'll share them with you. Number 1, what does it track? Is it global or a country like US or UK? Is it a sector like technology or healthcare? Number 2, cost. It could be TER, Total Expense Ratio, or OCF, Ongoing Charges. So this cost can compound over the years and over the decades. They might look small, but cost matter. And don't forget platform fees. They are often more important than many people realize. Some platforms don't charge a fee. So that's great. 3, accumulation or distribution. How are the dividends treated? Is it being reinvested or paid out? Number 4, obviously, is tax efficiency. Are you using the right tax-efficient pot like your ISA or SIP? Most people spend too much time trying to find the perfect fund, but what's really important here is once you find what you need to invest in, consistency, tax efficiency, and give it time is the best approach.