Fund manager fees commonly come to less than one percent a year, according to an industry group.
Management fees and other charges from investment companies have fallen for each of the last four years, according to the Association of Investment Companies (AIC).
The industry body also said that 70 percent of conventional investment firm carry fees of under 1.5 percent. Around one in three companies charge less than one percent per year.
Managed funds tend to levy extra charges on customers in order to take a cut of returns and cover administration costs. Performance-related charges are also taken from the investments by the firms - fees which are not included in the AIC figures.
Annabel Brodie-Smith, communications director at the AIC said: "Whilst charges are only one of several factors to bear in mind, in volatile markets their impact can feel all the more pronounced.
"So it is very encouraging to see that investment company charges have remained, on average, extremely competitive. In recent years, charges have come down due to rising assets, ensuring that investors benefit from economies of scale."
The lowest cost investment sector covered by the AIC was found to be UK Growth & Income, followed by Global Growth and Global Growth & Income.
