Move from quinn deposits fund to EuroStoxx 50

Hi,

I opened up a quinn freeway fund a few months back. Currently its sitting in the deposits fund which i understand to be worse than having it at deposit rates in the back.
I've been thinking for a while to move it to the Eurostoxx 50 fund, which i'm sure would be better in the longer term. Given the uncertain outlook on the share market would this be a silly move at this time? ie. Would I be better off waiting a few months to see how the markets pan out?

Cheers

raven said:

Would I be better off waiting a few months to see how the markets pan out?

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Nobody can answer this question with anything other than a guess.

While the market is in termoil at the moment and quite a number of people are bearish about it's immediate performance, nobody can predict with any accuracy when we will see the bottom of the downturn and when we might start to see a recovery.

You need to decide what level of risk is appropriate to you. Are you happy to risk your investment(s) in the short term and wait it out for (potential) long term gains (In the long term equities have/should outperform what you achieve on deposit)? What is your investment term? Can you wait it out for the markets to improve? etc. etc.

You will see very frequent discussion on AAM about the con's of trying to "Time the Market". If you're investing in equities, you should be aware of the short time volitility/risks and be happy to ride these out in the hope of long term gains.... if not, you should avoid this form of investment completely.

The volitility of the previous year or so means that investing now will provide far better potential than someone investing 12 months ago. Will we be saying the same thing in 12 months time? Who knows! If we could predict this with any certainty we'd be very wealthy indeed.

Investment is long term, - ie. its a 10K fallback reserve in case of hard times, - hopefully it might never be needed. Think i might just put it into the eurostoxx and put it to the back of my mind.

Would I be right in saying that the eurostoxx is a more low to medium risk option. ie. no currency risk and reasonably well diversified, with mature companies?

Do you mean the Quinn Cash Freeway fund?? If so you are paying 1% a year in charges for the privilege. Personally given that there is no entry cost to the funds and you are allowed 2 free switches a year I would transfer to the euro Freewayat quinn at any rate in two tranches (not exactly unit cost averaging but better than one go I suppose!) The euro freeway offers good diversification, though you could look at putting small amounts on some of the other funds as well. A lot depends on your investment horizon however, but I would definitely opt for a high interest deposit account over the quinn cash freeway any day.

Sorry, don't understand what you mean by:
I would transfer to the euro Freewayat quinn at any rate in two tranches (not exactly unit cost averaging but better than one go I suppose!)


Can't I just transfer it in one go?

I presume they mean transferring in two tranches to mitigate the risk of the fund losing value due to unit price falls immediately after a single lump sum transfer? Not that they cannot do it in one go. Some might argue that this is attempting to time the market. If the investment is a long term one then transferring in one lump sum probably makes no odds from a risk point of view.

Re: Investing In Emerging Markets

In current markets what do people think regarding investing in Emerging Markets funds eg Quinn or Rabo Emerging Markets/Stars. In general they would seem to be better value than a few months ago and in the long run should give good returns. Question is how badly will these "emerging markets" be effected by downturns elsewhere?

Re: Investing In Emerging Markets

Have given this some thought also.
At least the emerging markets fund is reasonably well diversified, - geographically at least, - as compared to a China or Latin America fund.

mike mac said:

In current markets what do people think regarding investing in Emerging Markets funds eg Quinn or Rabo Emerging Markets/Stars. In general they would seem to be better value than a few months ago and in the long run should give good returns. Question is how badly will these "emerging markets" be effected by downturns elsewhere?

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