5 You have decided to invest £50 per month for the next five years, and you do not mind too much what you invest in, but you do want it to be a reliable and low-risk investment. Your default option is to invest in a FTSE 100 index tracker. You already have a reasonably large holding of index trackers, so you are considering an emerging markets fund that is actively managed instead. Use the Internet to find a FTSE 100 index tracker and an emerging markets fund. For each of these find out what the annual management charges are. Using the Internet find out the expected return on each type of investment, that is, on the basis of what has happened in the past, what is the expected return on each type of investment. (The FTSE 100 gives around a 6 percent to 8 percent real return, over the long run, but see if you can find these numbers on the Internet.) Using either a calculator or a spreadsheet, work out which investment is likely to have a better pay-off for you in the long term. What is the biggest risk in the emerging markets fund, and what might you do about it?