30k Investment???

DM1983

Hey, looking for advice of a general nature. Have managed to save a reasonable chunk of cash and am thinking about investing the lot in a spread of Rabo managed funds. I don't know anything about the stock market and don't intend to learn (sorry) but at the same time don't want to miss out on large potential gains that seem to be out there. Otherwise its going in a savings account where it isn't going to beat inflation to any decent degree. SO basically is it a good idea? Bad idea? Do you have a better idea?
Thanks!

MrMatisse

Id go and learn the basics of investing first. You cant invest 30k on the basis of tips in boards.ie. Thats crazy.And remember these investments could fall in value too.

Qwerty27

Firstly, no one on here can give you qualified financial advice.

2) No inflation at moment, actually deflation, see article in todays Indo for more info,

3) "miss out on large potential gains that seem to be out there"...only common sense part of your thread, "potential gains"... no investment in funds is guarenteed

DM1983

Ah guys you're not helping at all I'm just looking to see what people think about the Rabo managed funds. I don't have the knowledge required to properly research the markets and then invest in individual companies.
Thats why the funds look like a good option to me. I was thinking I'd just pick the best performing funds (by Morningstar ratings or whatever equivalent rating systems there are) and put 5k into each of them.
Is there something fundamentally wrong with this approach? Am I likely to do better sticking it in Halifax for another two years at 3.44% AER? Surely interest rates will rise again next year and with that, inflation?

shapez

Have a look at the The AIB Accumulator Fund.

http://www.aib.ie/personal/investments/Investment-Portfolio

MrMatisse

A fund may have a high rating but it could also be very high risk. You could end up putting your money in a batch of very risky funds. With a little bit of research you would be able to know which funds are high risk and which are low risk otherwise investing in funds with an amount like 30k is a good idea.

Once you can tell high risk from low then you should go for it, but make sure the 30k isnt everything you have and know that there will be ups and downs and that funds investments are generally medium term.

Lexus1976

Dmangan wrote: »

Ah guys you're not helping at all I'm just looking to see what people think about the Rabo managed funds. I don't have the knowledge required to properly research the markets and then invest in individual companies.
Thats why the funds look like a good option to me. I was thinking I'd just pick the best performing funds (by Morningstar ratings or whatever equivalent rating systems there are) and put 5k into each of them.
Is there something fundamentally wrong with this approach? Am I likely to do better sticking it in Halifax for another two years at 3.44% AER? Surely interest rates will rise again next year and with that, inflation?

Check the freeway fund out:

http://www.quinn-life.com/quinnlife_freeway_funds.html

The website will give you an indication of risk per fund.

shapez

Really-Stressed wrote: »

A fund may have a high rating but it could also be very high risk. You could end up putting your money in a batch of very risky funds. With a little bit of research you would be able to know which funds are high risk and which are low risk otherwise investing in funds with an amount like 30k is a good idea.

Once you can tell high risk from low then you should go for it, but make sure the 30k isnt everything you have and know that there will be ups and downs and that funds investments are generally medium term.

With what AIB are offering at the moment for the zero risk funds. If everything should go pear shaped over the period you have invested, you walk away with exactly what you initially invested. Depending on which fund you choose, you can reap nice rewards if it is a success.

From the AIB website...

*The AIB Accumulator Fund* combines capital security at the end of a specified period with the prospect of annual ‘locked-in’ returns linked to the performance of one or more leading stockmarket indices over the same specified period. Some issues incorporate a minimum rate of overall return.

*The AIB Portfolio Combination Offer* is designed to achieve a balance between risk and return. The AIB Portfolio Combination Offer consists of two separate policies investing in two underlying funds. The Funds provide capital security over specified periods. One of the Funds pays a fixed rate of interest on a part of your investment, typically over a 2-year period, while the other Fund then provides the prospect of returns linked to the performance of one or more leading stockmarket indices on part of your investment over a longer period.

*The AIB 2-Way Fund* – has the potential to provide a return in a rising or a falling market. Predicting how stockmarkets are likely to perform can be a difficult task, one which can put off many investors. Most investments will only provide a positive return when stockmarkets are rising, which means that when there is increased stockmarket volatility, there is increased risk that investors will not get the return they expect. The AIB 2-Way Fund may provide a solution to this scenario. Unlike most other investments, the AIB 2-Way Fund Issue offers the potential for a return in both a rising market and also in a falling market, as well as providing you with capital security.

Mayb eof more help to potential investors.
http://www.itsyourmoney.ie/index.jsp?1nID=126&2nID=126&pID=105&nID=126

MrMatisse

shapez wrote: »

With what AIB are offering at the moment for the zero risk funds. If everything should go pear shaped over the period you have invested, you walk away with exactly what you initially invested. Depending on which fund you choose, you can reap nice rewards if it is a success.

From the AIB website...

*The AIB Accumulator Fund* combines capital security at the end of a specified period with the prospect of annual ‘locked-in’ returns linked to the performance of one or more leading stockmarket indices over the same specified period. Some issues incorporate a minimum rate of overall return.

*The AIB Portfolio Combination Offer* is designed to achieve a balance between risk and return. The AIB Portfolio Combination Offer consists of two separate policies investing in two underlying funds. The Funds provide capital security over specified periods. One of the Funds pays a fixed rate of interest on a part of your investment, typically over a 2-year period, while the other Fund then provides the prospect of returns linked to the performance of one or more leading stockmarket indices on part of your investment over a longer period.

*The AIB 2-Way Fund* – has the potential to provide a return in a rising or a falling market. Predicting how stockmarkets are likely to perform can be a difficult task, one which can put off many investors. Most investments will only provide a positive return when stockmarkets are rising, which means that when there is increased stockmarket volatility, there is increased risk that investors will not get the return they expect. The AIB 2-Way Fund may provide a solution to this scenario. Unlike most other investments, the AIB 2-Way Fund Issue offers the potential for a return in both a rising market and also in a falling market, as well as providing you with capital security.

Mayb eof more help to potential investors.
http://www.itsyourmoney.ie/index.jsp?1nID=126&2nID=126&pID=105&nID=126

The charges are very high and if things go well you only get a part of the total growth in the market. Nearly better leaving in cash.

johndaman66

Really-Stressed wrote: »

Id go and learn the basics of investing first. You cant invest 30k on the basis of tips in boards.ie. Thats crazy.And remember these investments could fall in value too.

Also in addition may I suggest that you take any advice offered to you by Rabobank employees or any other bank employees with a pinch of salt OP. It is these guys jobs to sell the company products and don't fool yourself into thinking that they have your interests high up in their priorities.

Probably best to seek independant advice from a financial adviser who you are paying for their time but do bear in mind that even these chaps can be afeliated with investment firms so worth being selective and if they were to be pushing a lot of products of the same company alarm bells would be ringing. Bear in mind that their rates can be pretty saucy too and some may argue that these so called experts are no better qualified to dish out advice than the next man given the unprecidented happenings in worldwide markets over the last 18 months or so for example.

Re investing your money in a Fund you should base your decision on your own personal circumstances also. Have you this money earmarked for something at a certain date in the future at which point you would you would need to lift all of at least your initial investment for wedding, childs college education, retirement etc etc. Funds tend to be volatile and particulary so over the past 18 months in many cases...even well managed Funds that were previously considered safe bets holding low risk assets. Are you the type of person that is able to deal receiving such a statement and watch 1,000's being wiped off your hard earned savings? Can you financially afford to take such a hit? These are some of the many questions you should ask yourself before committing to such products. There is also the option of putting 15k on deposit and investing the other 15k in an managed Fund or apportion it as you see fit. i would monitor the performance of any Fund I subscribe to on a regular basis though. BOI Life for example only send out statements once a year. This is not anywhere near frequent enough.

DM1983

Ok thanks very much for all the replies. Some very interesting info in there. Particularly tax free deposits in the post office! Had no idea of that one. I like the half and half approach I have to say. That money becomes available in the next month so I have a while longer to plan what I want to do with it.
Thanks again for the input.

eclectichoney

Dmangan wrote: »

Surely interest rates will rise again next year and with that, inflation?

Just on that note, if interest rates rise it should in theory dampen / reduce inflation, and not cause inflation. (Although usually ECB rates rise because of inflationary pressures in the first place - it is seen as a measure to counteract inflation)