# Rabo or Quin Life for funds investing?



## colly (19 Sep 2007)

I'm about to put some money into funds. Probably about 5-7k now, and then smaller ongoing monthly additions. Originally I have been looking at the Quinn Life Freeway - all very simple and straightforward - but I have recently seen the Rabo ones too and I'm now confused as to which one to pick.

I understand the Rabo fees are higher (roughly 2.75% if your investment doesn't move) but I also know they are actively managed funds, whereas the Freeway funds try to track the market. Higher charges are ok if they have a better chance of making larger gains. Do you think this is the case?

I'm not so concerned with risk I'm looking for max growth - so was planning on splitting between three funds: China, Latin America, and Emerging Markets. I have not really taken a good look into the Rabo alternatives yet.

Charges aside, which one is better in your opinion, and why?
- Which ones performs better on average (Or which ones has the best performing funds?)
- Which one has the better website / interface for managing your investments?

Any other opinions appreciated.
Thanks


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## Sarsfield (19 Sep 2007)

Re index trackers vs managed funds, it's generally accepted that managed fund performances don't beat index trackers *on average*

The arguments start over whether or not it's possible to select an outperforming managed fund. Nobody knows for sure (although I'm sure many think they do).

Do you think you can select the managed funds likely to outperform the market (by a margin of over 1% just to cover the extra management charges)?

Regards web interfaces, since Rabo is a proper bank with a bank sorting code, it's possible to do everything electronically. You can transfer money in and out of Rabo as well as buy & sell funds at any time. This makes it very easy to use. *You are responsible for doing your own taxes when you sell Rabo funds*

You need to use An Post to invest/encash with Quinn. But they will deduct tax for you on encashment.

You can check your investments online with both.

Personally, I use Quinn to buy geographies (Europe, Emerging etc.) and Rabo to buy sectors (mining, energy etc.)


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## Slim (20 Sep 2007)

> You need to use An Post to invest/encash with Quinn.


 
Could you explain this please? why would anyone have to use An Post?

Slim


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## Sarsfield (20 Sep 2007)

Slim said:


> Could you explain this please? why would anyone have to use An Post?
> 
> Slim


 
For lump sums, you need to put a cheque into an envelope, put a stamp & address on it and post it to Cavan.


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## mercedes1 (28 Sep 2007)

I invested 4K in a rabo fun (india) in May 07, I am pleased to say that it is now showing a profit of 575 approx. If I decide to sell now, what charges do I 
pay ? This seems an excellent return for a few months


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## Sarsfield (28 Sep 2007)

mercedes1 said:


> I invested 4K in a rabo fun (india) in May 07, I am pleased to say that it is now showing a profit of 575 approx. If I decide to sell now, what charges do I pay ?


 
If your units are now worth €4575 then I *think* you'll pay:

0.75% of €4575, €34.31, to Rabo and 23% of 540.69 (profit after charges), €124.36, to the Revenue.

So €158.67 in total?

*Disclaimer: Please don't take this as gospel. Especially the tax bit! I have neither qualifications nor experience in doing taxes!*

Anyone else care to comment on my calculation?


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## mercedes1 (29 Sep 2007)

Thanks alot for your information and calculation. Only comment that I have is that I thought CGT tax was 20%. Thanks for your help.


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## radioactivem (29 Sep 2007)

Quinn and Rabo funds are taxed like bank accounts so are subject to DIRT tax which is a bit higher (23% I think). If you buy shares in the underlying ETFs directly though you will be taxed using CGT rate.


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## minion (29 Sep 2007)

Sarsfield said:


> If your units are now worth €4575 then I *think* you'll pay:
> 
> 0.75% of €4575, €34.31, to Rabo and 23% of 540.69 (profit after charges), €124.36, to the Revenue.
> 
> ...



Do you not get a tax credit of €1270 per year on this?


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## messyleo (29 Sep 2007)

The 23% (not DIRT, which is currently 20% fyi) is an exit tax on funds, and payable every eight years (or when encashed) iirc. The €1270 CGT exemption is exactly that - i.e. it is for capital gains. Unit-linked funds are not liable for CGT.


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## minion (30 Sep 2007)

gravitygirl said:


> The 23% (not DIRT, which is currently 20% fyi) is an exit tax on funds, and payable every eight years (or when encashed) iirc. The €1270 CGT exemption is exactly that - i.e. it is for capital gains. Unit-linked funds are not liable for CGT.



Thats a pity.
There should be some sort of exemption though.


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## messyleo (30 Sep 2007)

Why? Funds are allowed to grow for up to 8 years on a gross basis, whereas DIRT is payable every year. I think it's quite a fair treatment imho. But that's a little off topic, so mods feel free to remove!


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