# quinn - life  policy switch (profit taking)



## pator (30 Oct 2007)

Hi all,
After reading a lot of valuable advice here I finally made my first investment in January of this year with quinn life freeway funds. In line with all the recomendations expected it to be at minimum 3 -5 year investment put hopefully much longer. Made some ad hoc payments early in yr as well. 

As I say new to the whole area and totally accept that celtic is down at moment but didn't panic and sell etc

Finally my question - for an investment of €1200 in china freeway I can now realise just under €2035. Seems like a great return in a short space of time, I know that no one can predict the future so what I am looking is general strategy advice, does it may any sense to do some profit taking, eg leave €1200 in china and switch the €800 profit into a different fund that "I think/percieve" is lower risk?? Hope this makes sense as a question


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## GeneralZod (30 Oct 2007)

I'd sell all of it now and convert to euro/uk/us/celtic funds.


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## shanegl (30 Oct 2007)

Definitely rebalance to your original allocation at the very least.


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## pator (30 Oct 2007)

Thanks guys, I presume its easy to switch just a matter of ringing. AFAIK am enttled to two free switches per year.

As I mentioned made some ad hoc payments and hope to do the same late this year and early next year, if I rebalance now to original investment in China I presume it makes no sense to allocate a percentage to China from the new investments.
Or on the basis that I , theoritically at least, made original allocation on my attitude to risk I should stick with original plan. ?


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## LexLuthor (31 Oct 2007)

I'm in a similar position.
You seem to be able to switch existing funds just using the website - I did this today to rebalance back to my original splits and it seems straightforward.
As mine is a long term investment, I will continue to allocate a % to China. Not doing this would seem to me to be trying to time the market.


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## shanegl (31 Oct 2007)

pator said:


> Thanks guys, I presume its easy to switch just a matter of ringing. AFAIK am enttled to two free switches per year.
> 
> As I mentioned made some ad hoc payments and hope to do the same late this year and early next year, if I rebalance now to original investment in China I presume it makes no sense to allocate a percentage to China from the new investments.
> Or on the basis that I , theoritically at least, made original allocation on my attitude to risk I should stick with original plan. ?


 
IMO you should stick with your original allocation. Rebalance your funds through a switch and leave your premium allocation as is. You can do this through the website.


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## yop (1 Nov 2007)

Guys, can you explain what you mean rebalance as regards the funds there? I am in the same situation, had a 100% investment but switched 50%, 25% latin and 25% emerging. 
So I am interested in why you are saying Rebalance and why? 

thanks


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## firstin (2 Nov 2007)

hi, i'm also interested in finding out the answer to yop's question. 
Why is rebalancing a good idea? an example of how it works would be great.


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## firstin (2 Nov 2007)

ok sorry for the previous post, found the answer here:
[broken link removed]


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## ClubMan (2 Nov 2007)

Rebalance just means diversifying across a wider range of funds rather concentrating mainly or solely on one or a smaller range. How you choose what fund mix is appropriate depends on many factors including your attitude to risk/volatility, investment term/timescale, other investments, charges etc.

_Post crossed with firstin's._


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## yop (2 Nov 2007)

Thanks guys, sure I will risk it for a biscuit in China for a few more months.


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## pator (2 Nov 2007)

ClubMan said:


> Rebalance just means diversifying across a wider range of funds rather concentrating mainly or solely on one or a smaller range. How you choose what fund mix is appropriate depends on many factors including your attitude to risk/volatility, investment term/timescale, other investments, charges etc.
> 
> _Post crossed with firstin's._


 
So in terms of rebalancing the fact that for example China has done well reflects a "good investment" at the time ? 
In terms of rebalancing my problem is that at the moment not sure I am alot more confident about any of the other funds. As I said done well from China, emerging markets up just over 40% as well, still China and emerging only represent about 18% of overall fund (rest primarily celtic and euro)
So if I take some money out China not that confident about it any where else.  At the moment am holding off making an ad hoc payment into the fund (some of which would prob go to China) so it it abit "mad" to switch out of China.  

As a newbie investor wondering how difficult it is to take out completely the 800 profit from China and consider reinvesting elsewhere (maybe rabo, maybe mini break pre Christmas)

Any thoughts most welcome


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## ClubMan (2 Nov 2007)

pator said:


> So in terms of rebalancing the fact that for example China has done well reflects a "good investment" at the time ?
> In terms of rebalancing my problem is that at the moment not sure I am alot more confident about any of the other funds. As I said done well from China, emerging markets up just over 40% as well, still China and emerging only represent about 18% of overall fund (rest primarily celtic and euro)
> So if I take some money out China not that confident about it any where else.  At the moment am holding off making an ad hoc payment into the fund (some of which would prob go to China) so it it abit "mad" to switch out of China.
> 
> ...


I think your problem here is that you seem to be trying to time/predict the markets. You would be better off just looking for funds with an appropriate asset mix, risk/reward profile etc. to match your specific needs, appetite for risk/volatility, investment timeframet etc. in my opinion. Even this is not so simple though.


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## shanegl (2 Nov 2007)

> As a newbie investor wondering how difficult it is to take out completely the 800 profit from China and consider reinvesting elsewhere (maybe rabo, maybe mini break pre Christmas)


 
I think the min withdrawal is something like 1200.

The whole point of rebalancing is that you remain true to your initial allocation, and that you sell off funds when they're dear and buy them back when they're cheap (realative to each other and your initial allocation). In the long run, doing this maybe once a year, it has historically made more money than not doing it.


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## mercedes1 (3 Nov 2007)

That sounds like good advice, Many of these funds can drop quite a lot in a day and be back up again in a week or so. Just a question on these, does one incur costs when you sell say half of your rabo fund and rebalance by buying say a similar amount in a week or two.


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## messyleo (3 Nov 2007)

I don't think Shanegl was advocating that you buy and sell funds on a weekly basis to take advantage of smaller fluctuations. With rabo there are entry and exit costs which you would have to bear in mind


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## shanegl (3 Nov 2007)

mercedes1 said:


> That sounds like good advice, Many of these funds can drop quite a lot in a day and be back up again in a week or so. Just a question on these, does one incur costs when you sell say half of your rabo fund and rebalance by buying say a similar amount in a week or two.


 
Don't know about rabo, but quinn will do this twice a year for free.


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