Rabo Funds...

Wudyaquit

cillo2000 wrote: »

1. Looking at the investment tool, it seem to be possile to invest in funds for a minium of one year, is this correct?

Yes - no time limits although you pay entry fees

cillo2000 wrote: »

2. Once you invest - how often is their an update on the fund? Every month/quater/year?

It's valued daily - you can check your value online - you'll only get a balance statement in the post once a year

cillo2000 wrote: »

3. Has anyone invested in a Dividend fund? Would anyone recommend them?

There's no difference in a dividend or growth fund other than you get interim payments with a dividend fund - normally those interim payments are jsut added to your main investment and increase the value of your fund. Unless you'd like to be getting regular payments, you're better off with a growth fund as you don't need to pay the entry fees on the reinvested earnings although the difference isn't worth worrying about

homer911

The Fact Sheets are also updated on a daily basis

Once you login to your account, there are customisable trend graphs on each fund over varying periods - the public trend graphs are hopeless

A dividend fund is one where the fund manager picks shares with high dividend yields or dividend potential, but not necessarily price growth - everything goes back into the fund - you do not see activity on your fund account

grange mac

I think america is the place to put some money this year, with the dollar weakening for the moment now is a good time. Their blackrock fund is the one I will be going for.
Also recon china/india too hot and only going to head one direction so keep away as all easy money there has been made.

Zascar

I just took the plunge. I could spend forever deliberating - and in fairness I should have invested months ago but just had the cash sitting there doing nothing. I went for the JP Morgan Global Natural Resources and the Henderson HF Global Technology Fund. They are both on the Top Picks list.

Does anyone know another site that is good for tracking the performance of your investments? I tried Google finance, it can track the Henderson one but not the JPM fund.

Atlantic Dawn

Zascar wrote: »

I just took the plunge. I could spend forever deliberating - and in fairness I should have invested months ago but just had the cash sitting there doing nothing. I went for the JP Morgan Global Natural Resources and the Henderson HF Global Technology Fund. They are both on the Top Picks list.

Does anyone know another site that is good for tracking the performance of your investments? I tried Google finance, it can track the Henderson one but not the JPM fund.

Morningstar.co.uk is very good for stats and figures for each fund.

ceekay74

Sorry for dragging up an old thread here, but just wondering if anyone is still using Rabo funds?

If so, any opinions/observations/recommendations?

I have a Rabo saving account, just thinking of giving it a go since it's so easy to set up.

topper_harley2

Easy to use but charges are high: http://www.askaboutmoney.com/threads/rabodirect-investment-funds.192805/

ceekay74

topper_harley2 wrote: »

Easy to use but charges are high: http://www.askaboutmoney.com/threads/rabodirect-investment-funds.192805/

3% over a year if I understand it properly. (0.75% to invest, 1.5% over a year, 0.75% to withdraw - assuming keeping the money in the fund for 1 year)

Is that considered high?

topper_harley2

3% is MASSIVE. Generally you wanna keep TER (total expense ratio) less than 1%, the lower the better. There are funds with TER of 0.2%, which you can buy via online execution-only brokers such as TDWaterhouse/Degiro, without the .75% entry/exit fees.

ceekay74

topper_harley2 wrote: »

3% is MASSIVE. Generally you wanna keep TER (total expense ratio) less than 1%, the lower the better. There are funds with TER of 0.2%, which you can buy via online execution-only brokers such as TDWaterhouse/Degiro, without the .75% entry/exit fees.

I checked tdwaterhouse and can only find this...

http://www.tddirectinvesting.ie/getting-started/rates-and-charges/

€15 seems a lot

Degiro seems better but more complicated

https://www.degiro.ie/data/pdf/ie/IE_Feeschedule.pdf

topper_harley2

It depends on how much you are investing. TDWaterhouse's 15 euro is a flat fee, so if you were to invest 100K in one go, it's still 15 quid or 0.015%. The Rabo amount is a percentage, so if you invested 100K with them, it would cost 750.

Similarly selling the 100K fund will be another E15 with TD, while exiting the fund in Rabo will be .75% of 100K = 750.

However, the ongoing fund charge is more important than the initial cost (you pay that once, whereas the ongoing charge is every year, and is a percentage of the amount you have in the fund. So if you have 100K in a fund, and are paying 1.5% per year AMC (annual management charge) then that is 1500 per year, whereas 0.2% AMC in TD on a fund of 100K is only 200.

Put another way, say Rabo and TD fund averaged 8%, and you had the 100K invested for 20 years, the TD fund would be worth almost 450,000, while the Rabo one would be only worth 350, 000!!

After subtracting the AMC, Rabo fund would only return 6.5% net, while the TD fund would return 7.8%....over 20 years this adds up to a large difference.

Calculated using:
http://www.moneychimp.com/calculator/compound_interest_calculator.htm

ceekay74

Thanks topper, great info.

Looks like Rabo is only suitable for investing 100's rather than 1000's