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Or that funds of funds, often with two layers of fees, might offer slimmer returns.
"There are layers of fees, your control rights are zero and your costs are astronomical," he said.
"With fund of funds, it is even more of a losing game because of the layers upon layers of fees".
But investors should read the fine print carefully, experts say, because these investments do not come cheap and can have layers of fees.
With ever more numerous layers of fees, airlines have essentially figured out a way to raise fares from business travelers, who are far more likely to choose to pay a little extra for a little less discomfort.
To be worth it, their choice has to provide returns in excess of the cost of borrowing, if they are leveraged, and two thick layers of fees (their own, and those of the funds they choose).
Similar(42)
These funds have an added layer of fees.
Funds of hedge funds, which have absorbed much of the new money, add on another hefty layer of fees.
Most new investors back the sector via funds-of-funds, which collect a second layer of fees.
Beneath this layer of fees are those imposed by each underlying fund, typically a 1percentt management fee and a 20percentt commission on profits.
The average fund lost 0.2% in the first half and the average fund-of-funds 1.4%, reflecting the extra layer of fees they charge.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com