Cheapest unit linked fund for lump sum

Thanks for clarifying.

I'd suggest that the moderators make this a Key Post as this is the best deal I've seen in the market for Index-Tracking Funds. Cheapest I've seen previously was 0.625% for New Ireland Smart Funds on a nil commission/fee basis - they'd only do 0.5% for large amounts, i.e. >€100,000.

Now we're getting places.

Yes, if we had concrete details, like who provides what, on what terms and who to contact etc. I would be more than happy to include them in the Best Buys section.

CCCOVich I checked your figures and they are reasonable, even for an investment as small as €5K the 0.75% becomes better value once the term is 8 years +

Even after 5 years and index-tracking investment with South's family firm would beat QL, all other things being equal. That's including the €100 fee.

It would be useful to know which company is the ultimate provider, as tracking error could possibly skew things but on the other hand, this alternative provider may offer a wider range of indices to track than QL.

But overall an excellent offering in the index-tracking fund arena.

South's family AA firm
Investment amount €5,100
Fee €100
Invested €5,000 (I'm assuming there may be a minimum of €5,000?)

Index-tracking fund 0.5% management charge per annum (AMC)

Assume 6% growth before AMC

Gross Value after 4 years: €6,194.12
Gross Value after 5 years: €6,534.80
Gross Value after 6 years: €6,894.21
Gross Value after 7 years: €7,273.39
Gross Value after 8 years: €7,673.43

Quinn Life
Investment amount €5,100
Fee €0
Invested €5,100

Index-tracking fund 1% management charge per annum (AMC)

Assume 6% growth before AMC

Gross Value after 4 years: €6,199.08
Gross Value after 5 years: €6,509.04
Gross Value after 6 years: €6,834.49
Gross Value after 7 years: €7,176.21
Gross Value after 8 years: €7,535.02

Dave there is an eror in your calculations above.

Remember that the Annual Fund Management charge cmpounds also...so the value after year N should be calculated as:

5000 * [(1.06)/ (1+Fund Management Charge) ^ N]

Hope this makes sense to you, if you re-run your calcs using this formula you will see that it changes the answers.

Well it doesnt take a genius to realise that the capital value of 2 funds with identical growth rates but with different charges will diverge.
The big question is how can I gain access to an index tracker at such a lower rate than Quinn Life ? I dont see any contact details in this thread

Apart from that, while feeling my money to be safe with Quinn Life , South's family AA firm as a brand doesnt ring a bell or give me that same warm fuzzy feeling. Would the money be placed with a better known company by South's family AA firm ?


*edit: sending a pm now*

Sign - the money, as I mentioned already in this thread, would be placed with an investment manager like Irish Life, Eagle Star, Hibernian, Oppenheim etc...have a look at my earlier post.

If you want a warm fuzzy feeling, buy a hair dryer

South said:

Sign - the money, as I mentioned already in this thread,

Click to expand...

Well I did wake up at 6 am
I'm definitely not a morning person !
Sending you another PM now for clarification

South said:

Dave there is an eror in your calculations above.

Remember that the Annual Fund Management charge cmpounds also...so the value after year N should be calculated as:

5000 * [(1.06)/ (1+Fund Management Charge) ^ N]

Hope this makes sense to you, if you re-run your calcs using this formula you will see that it changes the answers.

Click to expand...

Cripes - too early on a Monday morning to try to comprehend why that's different to my method, which was:

South's family AA firm
5000 * (1.055^N)

Quinn Life
5100 * (1.05^N)

It's not the same!