The cost of investing in retail funds of funds in the UK fell 7% over the last three years as competition among asset managers continues to increase, according to new research.

The total expense ratio of multi-manager funds, which reflects the costs of the funds as well as the fees paid to underlying funds, fell from 2.51% to 2.34% for the three years to the spring, according to data analysts Lipper, which analysed fund date up to April and May this year.