Regular investment in funds

[mercman]

Good Points from SBarrett, but you need to check these points out and then decide which route you wish to choose.

If moving the funds, Do your own research to ensure which route is best for YOU, and to find the last costly in fees etc.

 

[Rory Gillen]

In my view, the cheapest, most cost effective and most interesting way to 'Regular Invest' is to open an online stockbroking account and simply buy an asset each time you have, say, €1,000 to invest. I say a €1,000 as this is probably the optimum amount in order to keeps transaction costs to a minimum as a percentage of your monies invested.

There are plenty of global equity funds listed on stock markets that you can buy and hold for the long-term if you are not comfortable investing in individual shares. Global equity funds listed on stock markets, be they exchange-traded tracker-type global equity funds or actively-managed investment trusts have lower costs than the vast majority of non-listed funds be they Irish insurance company unit-linked funds or unit trusts etc.



Rory Gillen
Founder, GillenMarkets

 

[dub_nerd]

Thanks mercman, am with Zurich (eagle star fund) monthly 131, policy fee 2.80 pm, policy charges ??? 108 annual (excludes ann. management charge).
I have paid in approx 25k over a 16 year period current value of fund is 31k. Has it been a good/bad investment ?
regards

It works out at an AER of about 2.55%, not taking any tax considerations into account. It would have earned more in a standard deposit account, not to mention a fixed term one over the same period, with far lower risk.

 

[west_bound]

Thanks mercman, am with Zurich (eagle star fund) monthly 131, policy fee 2.80 pm, policy charges ??? 108 annual (excludes ann. management charge).
I have paid in approx 25k over a 16 year period current value of fund is 31k. Has it been a good/bad investment ?
regards

dreadfully poor return

 

[Steven Barrett]

It works out at an AER of about 2.55%, not taking any tax considerations into account. It would have earned more in a standard deposit account, not to mention a fixed term one over the same period, with far lower risk.

Very poor return.

There are a few factors you have to put into consideration. The first being the crash that happened in 2007/08. Your fund would have been completely wiped out.

The other is the charging structure. With a relatively low premium, the fixed policy fee takes a sizeable chunk out of your premium. I don't know what the allocation rate is on your plan but there is a chance that you have less than 100% invested. You could be in the situation where you need to make 7% to just break even!

Zurich now have one of the best charging structures for regular premium plans. You get 100% invested and no policy fee, just an annual management fee.

I opened one up 5 years ago and have made 6.85% per annum. When I take the tax off, it's a net return of 4.26%

 

[Frebel79]

I know that most people here seem to recommend ETF's but I keep looking into them and then not following through , so I think some sort of managed fund to get me started would be best. I have had a look through some of the other threads but they seem to focus a lot on ETF's.

The last few years I have been setting up savings accounts after savings accounts and now I really want to invest a small amount of money regularly probably 10k lumpsum and the 250 to 500 a month. I would generally be conservative but for this scheme would prefer something medium pssibly to high risk. I am comfortable having someone gamble with this amount on my behalf.

I had a look at some of the plans on the Irish Life website but would anyone have recommendations, bearing in mind I want minimal involvement month to month with probably an annual review.

As an aside when looking into funds I checked out Setanta Asset Management as I hadn't heard of them before They have a meet the team page on their website with about 20 employees listed with their photos. There isn't even one woman listed in their entire team,senior management ,portfolio management etc. I know the industry tends to be male dominated but because of that I won't consider that company.
It just speaks to me of a very closed minded operation that I would not be comfortable dealing with.

Bleary - how did you end up investing your money in the end?

I've been doing exactly the same over the last 2 years and have flitted between Rabo Direct funds, Zurich Life trackers and Irish Life funds but get weighed down by contradicting info. I'm tempted to just throw a small amount of money into rabo direct funds on a monthly basis despite the tax issues down the line. If I as confident in investing I would like to put in 5k at low/ medium risk while putting in 150 per month at medium and higher risk

Any help or advice from anyone for someone similar to bleary would be much appreciated

Frebel

 

[Atract04]

Cost averaging is good in other countries but it seems to much expensive here in Ireland between tax, management fees, exit fees and other miscellaneous fees... I would like to buy ETF's here in Ireland as I live here but instead I send it elsewhere...