how do you buy a EFT or into a mutual fund?

K

kildon

Registered User
Messages
157
Hi,

I've decided to invest about 10k in the stock markets but would rather invest in EFTs or mutual funds than individual shares. However, I've no idea where to even start looking for EFTs. I've looked on the Irish Life website at the various funds I could invest in but got lost in the number of them.
I would like to invest in 3 funds which track the performance of (i) the ISEQ (all of it not just the top 20), (ii) FTSE100 and (iii) S&P500.

Any ideas on how I can invest in these


Thanks
K
 
Various life assurance companies offer index-tracking funds for lump sums, e.g. New Ireland. If you don't need advice, you can get these on discounted terms from a discount broker. (Search for the thread on discount brokers here on Askaboutmoney.)

Alternatively, you can but an ETF through a stockbroker. Plenty of threads here on Askaboutmoney on choosing a stockbroker.

You should be aware of the differences between buying an ETF or investing in a fund, e.g. an ETF is subject to Capital Gains Tax like a share while a fund offered by an Irish life assurance company is generally subject to Exit Tax etc.
 
Like LDF, I'd recommend that with 10k I think you'd be better off going to Quinn, Irish Life, etc. and buy the most diversified unit funds you can get. I bought a bunch of ETFs through a broker years ago and since then I've spent too much time filling out weird UCIT tax forms and the like. I haven't analysed it fully but I'm not sure it's been worth it in terms of my time.

Unless you're talking about at least 50k, personally I'd go for unit funds with the lowest charges and bid/offer spread. If your investment subsequently grows or you've a big additional investment, then you could think of switching to investing in ETFs directly. But if you do so, be prepared to spend a lot of time (or pay an accountant) to figure out all the tax implications.
 
thanks for the advice, I think I'll buy unit funds from one of the assurance companies
 
Thank you for sharing the information.

There are a variety of options available to the investor who seeks to diversify their portfolio. In many cases, unit trusts can be useful in increasing profits on un-invested assets.
A company which is dealing in Mutual Funds will invest the money of investors in bonds, securities, assets, stocks and many other short term money generating market instruments. The holdings that are owned by the Mutual Funds are called as Portfolio. You will become a share holder of a company if you invest in each share in any of the mutual fund company.
 
You must log in or register to reply here.
Back
Top