# Evergreen fund.



## Gandhi (12 Apr 2008)

With BOI's evergreen fund, is it better to invest just one large lump sum or by monthly direct debits (including a smaller lump sum)? This is for around a 5 year investiment. Also, is there a way of keeping track on how well this or any other fund is doing?

Thank you in advance.


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## mercman (12 Apr 2008)

Gandhi. Have you managed to receive any special offer for the lump sum investment -e.g. a bonus for the lumpsum and reduced management charges??


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## Gandhi (12 Apr 2008)

No I wasn't offered anything like that.


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## mercman (12 Apr 2008)

Well I am at logerheads with them at the moment as I was told by another broker that for decent lump sums they will give up to 3% bonus and reduced management charges. Saying that there are a number of good funds out there at present and you are better going in now, (probably over a period of time) as the markets are very low at the moment.


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## Gandhi (12 Apr 2008)

So do you think it would be better to invest 30,000 euro + monthly investiments rather than for example 50,000 now?


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## roland (12 Apr 2008)

mercman said:


> Well I am at logerheads with them at the moment as I was told by another broker that for decent lump sums they will give up to 3% bonus and reduced management charges. Saying that there are a number of good funds out there at present and you are better going in now, (probably over a period of time) as the markets are very low at the moment.


 
Do you know when the bonus is paid?


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## mercman (12 Apr 2008)

Roland., for a six figure investment they give the bonus at the time of Investment. gandhi, in the present circumstances in my opinion, which is not a professional one, bear in mind, you may be better averaging your investments over a period of tme.


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## auburn (12 Apr 2008)

Evergreen: is this New Ireland's fund managed by BIAM?

Thanks
Auburn


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## mercman (13 Apr 2008)

Yes. New Ireland and BoI Evergreen are the same. NI is owned by BoI.


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## toffblue (13 Apr 2008)

This fund has an excellent performance history to it until recently (like most funds). Word of warning, it may have had its day in the sun as it has a significant exposure to commercial property. If I may suggest, you may want to look at an equity fund that offers value following the recent market falls. 

Regarding the monthly v lump sum debate, at this moment in time, with funds offering value, I would go with the lump sum. However this is not the case all the time and certainly not when markets are doing well.

Good luck...


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## shipibo (13 Apr 2008)

Hold off all investments at present, markets still very choppy, and evergreen has been a dog for the last year.



Why have you chosen this fund ???


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## toffblue (13 Apr 2008)

Crumdub,

You must know markets are going to continue falling........let us in on the deal!!


This is not a black and white issue for the OP. He has decided to invest following market decreases which I admire him for as valuations are better. Ever heard of the saying "buy low, sell high".

I've no affilation to BOI/NI.


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## shipibo (13 Apr 2008)

toffblue said:


> Crumdub,
> 
> You must know markets are going to continue falling........let us in on the deal!!



If you believe markets are going to fall in shirt . medium term, why advise investment ??




toffblue said:


> This is not a black and white issue for the OP. He has decided to invest following market decreases which I admire him for as valuations are better. Ever heard of the saying "buy low, sell high".
> 
> I've no affilation to BOI/NI.



I asked why OP picked this fund, do you own it , do you think it will make money in 1,2,5 years ???


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## stir crazy (13 Apr 2008)

toffblue said:


> Word of warning, it may have had its day in the sun as it has a significant exposure to commercial property.
> 
> Good luck...



I have been looking at this fund too over the last 2 or 3 years as it has performed very well historically however I think the above is very good advice which I would have posted myself if toffblue hadnt got there first.


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## lawdie (13 Apr 2008)

stir crazy said:


> I have been looking at this fund too over the last 2 or 3 years as it has performed very well historically however I think the above is very good advice



The decision to invest is for five years, so a strategy would be to invest 10k lump sum and regular savings (of another 10k) over the next twelve months.  That is pound cost averaging the units over time.  
Always keep some cash in the kitty!
Finally if your going to invest, spread your portfolio and use this as one fund of multiple funds. Diversify man diversify...


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## PMU (14 Apr 2008)

Gandhi said:


> is it better to invest just one large lump sum or by monthly direct debits (including a smaller lump sum)?


  By investing you are expecting that the stock market will increase in value over time – otherwise you wouldn’t bother to invest.  So invest your lump sum.  If you average in your lump sum and the market increases in value each payment you make buys less of the stock market, so overall you lose out as over time you have bought less of the stock market than you would have if you had invested the lump sum.  You could argue that when the stock market declines by averaging in you are buying more at a reduced price, which is correct, but if you knew the stock market were going to decline you wouldn’t invest.  You may be lucky to buy on the declines you are more likely to lose out on the increases.


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## lawdie (15 Apr 2008)

PMU said:


> By investing you are expecting that the stock market will increase in value over time – otherwise you wouldn’t bother to invest.  So invest your lump sum.



Only invest a full lump sum when all other short term needs are covered and you have an "adequate" emergency fund.


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