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00:00 The vast majority of people stick to the default option fund in their pension at work.
00:04 Mostly this is due to a lack of interest, but also confusion about how to choose between
00:09 potentially hundreds of different options. Now there are three criteria that will whittle down
00:14 the list of options really quickly. The first is the risk level. So you're looking for words
00:19 in the names of the fund like balanced, cautious, moderately adventurous, defensive,
00:24 growth, conservative. Look for funds which match your own tolerance for risk. The second factor
00:30 is the sector of the fund, which gives you some idea of what the fund is invested in, like US
00:35 equities, UK government bonds or mixed investments. In fact, I would start with mixed investment
00:42 sectors because you'll get a broad spread of investments, which is a great place to start.
00:46 And finally, look at the costs of the funds. You want to keep these costs to a minimum,
00:50 so look for lower-cost funds as a rule. It's fairly simple to filter the available funds
00:55 using these criteria. It just doesn't sound like it's going to be simple. And that's why...