Irish Life Property Portfoli0

K

kathdev

Guest
Hi
Can I get your opinions of Irish Life Property Property Portfolio, cost is 1.75% a year which I thought was okay.
However I noticed there is also a one off 7% reduction is the valuation in the fund.
Should I invest 5000 in this or is it expensive. Returns were 9% last year,
Thanks
k
 
cost is 1.75% a year which I thought was okay.

If this is a unit linked fund then 1.75% p.a. management charge seems high enough although I don't know if property funds tend to have higher charges than equity funds or index trackers?

However I noticed there is also a one off 7% reduction is the valuation in the fund.

Is this effectively a 7% bid-offer spread? Seems a bit hefty. You could also consider investing in a unit linked fund that invests largely or mainly in construction/property stocks if you want indirect exposure to property markets (here or abroad)?

Returns were 9% last year,

This is irrelevant as it has no bearing on future returns.

Did you do some sort of review/analysis of your financial/personal circumstances and arrive at the conclusion that indirect property investment was the most appropriate investment for your needs right now? Or did you just see this product advertised and start thinking about sticking some money in it?
 
Irish Life Property portfolio bond

Hi
According to brochure - where there are more investors seeking to cash in investments than are new investors wishing to join, there will be a once off reduction in the value of the fund, currently 7%. This is done to ensure that all investors in the fund contribute a fair share to the overall costs incurred by the fund in buying and selling properties. This reduction is to be expected because property investmends tend to follow a cycle
All the above is from the brochure.

My cash is earning 2% in Irish Permanant at present, an official there recommended investing in this as the returns are higher.

According to the brochure - property portfolio bond 2004 - there is a fund charge equal to 1.75% a year of the value of your fund.

I am not too well up on investing but feel my money should be earning more than 2%. Any assistance is much appreciated
 
Re: Irish Life Property portfolio bond

My cash is earning 2% in Irish Permanant at present, an official there recommended investing in this as the returns are higher.

No coincidence that they recommended a product from their own company. You should shop around for financial products and not expect from tied sales people. Note that the two products mentioned (deposit account and property investment fund) are not really interchangeable due to their widely different risk/reward profiles. Better to do an overall financial health check (on your own, with advice from people here or with an independent, professional advisor), identify suitable types of investment and only then look for specific products.

For better deposit rates see the best buys list.

I am not too well up on investing but feel my money should be earning more than 2%. Any assistance is much appreciated

Have a read of the links that I mention in before doing anything. Feel free to post more details about your overall financial/personal situation (including existing savings/investments, short/medium/long term investment goals, attitude to risk/volatility etc.) here and people might be able to provide some useful feedback/advice. Bear in mind the though.
 
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