RaboDirect Investment Funds

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?

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)

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?

username123 said:

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?

Click to expand...

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!

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.

MrEarl said:

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.

Click to expand...

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

Jim2007 said:

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

Click to expand...

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.

username123 said:

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?

Click to expand...

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??