davidpatrick
Registered User
- Messages
- 15
Hi
Sorry if this is a stupid question, but I’m completely new to all this so bear with me please!
I have a question on Rabo Investment Funds. My understanding is that you pick a fund(s) and agree a fixed amount each month to further invest. From what I understand you should really be aiming to keep these for medium to longer term to see a real return?
So just for example
I pick a fund from Rabo (presumably ‘cos I think its priced well and will increase in value) and I agree to purchase a further 100 per month. Let’s say I keep it for 5 years I will have bought 6K of the fund
What I don’t get is that if the fund is indeed well priced now and is on the up, why would I buy more and more of the fund every month for a few years at increased prices each month? If I believe that it will increase, does it not make more sense to buy a 6K lump sum now and sit on it instead?
Am I missing something here?
On an aside - once you agree to pay your additional 100 / month (eg). At some stage can you stop the additional purchases this without having to cash in the fund?
All help is welcomed
Cheers
Sorry if this is a stupid question, but I’m completely new to all this so bear with me please!
I have a question on Rabo Investment Funds. My understanding is that you pick a fund(s) and agree a fixed amount each month to further invest. From what I understand you should really be aiming to keep these for medium to longer term to see a real return?
So just for example
I pick a fund from Rabo (presumably ‘cos I think its priced well and will increase in value) and I agree to purchase a further 100 per month. Let’s say I keep it for 5 years I will have bought 6K of the fund
What I don’t get is that if the fund is indeed well priced now and is on the up, why would I buy more and more of the fund every month for a few years at increased prices each month? If I believe that it will increase, does it not make more sense to buy a 6K lump sum now and sit on it instead?
Am I missing something here?
On an aside - once you agree to pay your additional 100 / month (eg). At some stage can you stop the additional purchases this without having to cash in the fund?
All help is welcomed
Cheers