RaboDirect Investment Funds

[McTony]

When on the RaboDirect website earlier, I noticed that they're doing an offer for a reduced entry fee for their range of investment funds (reduced from 0.75% to 0.25%, while the exit fee is left at 0.75%). Some of the percentage returns, as can be seen [broken link removed] look pretty good, so I was half thinking of investing some money into them while the special offer is in place. (I do note that many of these funds would have a high enough element of risk to them, if they're posting returns in the 20 to 30% per annum over the last couple of years).

Having done a bit of research on boards.ie, I noticed some threads by people that weren't too impressed with their performance in the past, though some of these threads date to the time of the bust. I was wondering if many people here put money in these funds, and how did they find them if they did?

 

[Steven Barrett]

Why are they charging you 0.25% for you to give them your money?? And this is a special offer???


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[Boyd]

I think that's a little flippant! You're basically executing a trade when you buy into the fund. Every single broker charges a trading fee, I would see this as the same thing?

 

[Jim2007]

I think that's a little flippant! You're basically executing a trade when you buy into the fund. Every single broker charges a trading fee, I would see this as the same thing?

No it is not the same. This is what they want you to think, but in most cases you are actually paying twice - you pay the entry fee and the fund gets hit for the admin costs in any case, so the fee is free money for Rabo. Sweet!

 

[MrEarl]

While I agree with the comments about entry fees, there is also the consideration that it facilitates small investments in a reasonably large range of funds, without annual fees such as "service charges" and also, has a decent online offering... so unless your investing significant sums, I personally would not get hung up on the fees.

 

[Jim2007]

While I agree with the comments about entry fees, there is also the consideration that it facilitates small investments in a reasonably large range of funds, without annual fees such as "service charges" and also, has a decent online offering... so unless your investing significant sums, I personally would not get hung up on the fees.

Well of the couple of fact sheets I pulled up, the all had annual management fees some as high last 1.5%!

 

[MrEarl]

Well of the couple of fact sheets I pulled up, the all had annual management fees some as high last 1.5%!

Sorry, your obviously right and I expect those fees are charged from "within the fund", rather than to each individuals account.

That said, what I actually had in mind was the likes of an annual fee for having an individual stockbroking account - which I probably should have stated more clearly, when I first posted.

 

[Steven Barrett]

I think that's a little flippant! You're basically executing a trade when you buy into the fund. Every single broker charges a trading fee, I would see this as the same thing?

They are charging you 1.5% per annum too and whatever additional transaction costs. And then they charge you to take your money out too??