# Eaglestar Supercapp fund



## Frannie (10 Oct 2011)

hi
looking for advice on saving for children's education/college fund, it'll be a 10-20 year period and possible turn into a fund for something else after that. and will have to start off as a modest saving as 100 month for the next year or two after which I should be able to increase that.
Met with a financial adviser and this was what he recommended Eagle star supercapp fund (zurich). I like the fact that most of the money is safe ie low risk but I'm wondering is it worth the €300 set up charges I'm having to pay( think I was told that as I'm paying on set up, I won't have charges to pay over the years.) just wondering how this would compare to other plans out there, I wonder was the adviser just trying to sell his wares or is this the best plan for me?
and concerned about the set up charges as they seem high to me?
Appreciate any advice as I'm in no way knowledgable about this and even though it was explained to me, I forget now what I was told.


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## LDFerguson (11 Oct 2011)

While the SuperCapp fund is good stable fund for long-term investments, in my opinion it's not a good choice for a regular savings plan. At present, the SuperCapp fund is paying 3.25% per year before product charges. 

On the illustration you should have received there should be fine print that tells you the Reduction in Yield figure. It says something along the lines of "The effect of all the charges is to reduce your return by...X%"

This figure on a Zurich Life savings plan is probably around 1 to 1.5% per year. In other words, if the fund is paying 3.25% per year and the charges reduce this by 1.5% per year, you'd get a net return of 1.75% per year after charges. 

At present, you can get a better return than this by saving into a deposit account, with no explicit charges. If interest rates fall or the return on the SuperCapp fund increases in future years, you can always change your mind. 

Liam D. Ferguson


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## Frannie (11 Oct 2011)

Thank you for your reply,
I'll look up my document for that line, yes there is a 1.5% annual charge in addition to the start up fees I think that I could very well get a better rate of return with the post office. 
I guess if I stay on with this I'd be hoping for a major increase in the rate paid over the next ten years, 
or can i just drop this now, I haven't parted with any money but I have signed and agreed to everything including the direct debits.


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## LDFerguson (12 Oct 2011)

Just a personal opinion but, given that equity investment returns have been poor this year, I wouldn't be anticipating any great jump in the SuperCapp fund over the next few years.  You can switch from a deposit-type savings plan to the Zurich plan later in future years without charges if rates improve.  

Have a look at the Best Buys in Savings Rates here.  You can get 5% interest for the first year and 4% in the second.


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