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Rabobank Funds

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  • 19-10-2014 1:10pm
    #1
    ffactj
    Registered Users Posts: 102 ✭✭


    I have just changed job and find myselkf with an extra €1000 a month to save after maxing out my pension contributions.

    I dont really want to put it on deposit as the rates are so bad.

    I was thinking Rabobank funds.

    Im looking for some advice on which ones would be best for putting €1000 pm into. Something with enough risk to get a decent return.

    Or is there a different vehicle. Id like access to my money quickly should I need it, so long term products are not an option.


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    #2
    dellas1979
    Closed Accounts Posts: 4,128 ✭✭✭dellas1979


    ffactj wrote: »
    I have just changed job and find myselkf with an extra €1000 a month to save after maxing out my pension contributions.
    First of all, nice one!
    ffactj wrote: »
    get a decent return.
    Hmm-what is your idea of a decent return? (I dont think the reality is going to match your idea).

    Interest rates have pretty much gone down everywhere (including Rabo). On a bog standard savings account (that you can access anytime per your request), is 1.75% (you then pay DIRT tax on this).

    If you built up to e12000, at the moment (per year) on 1.75% would yield you e210 interest (before DIRT). Roughly speaking, e1000 (per year) would yield you e17.50 interest.

    Yes-an alternative is to invest it somewhere longer term (and maybe riskier to yield a higher interest). The Rabo term deposits seems to have the seem 1.75% APR though.


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    #3
    ffactj
    Registered Users Posts: 102 ✭✭ffactj


    dellas1979 wrote: »
    First of all, nice one!


    Hmm-what is your idea of a decent return? (I dont think the reality is going to match your idea).

    Interest rates have pretty much gone down everywhere (including Rabo). On a bog standard savings account (that you can access anytime per your request), is 1.75% (you then pay DIRT tax on this).

    If you built up to e12000, at the moment (per year) on 1.75% would yield you e210 interest (before DIRT). Roughly speaking, e1000 (per year) would yield you e17.50 interest.

    Yes-an alternative is to invest it somewhere longer term (and maybe riskier to yield a higher interest). The Rabo term deposits seems to have the seem 1.75% APR though.


    Yeah thats why i was thinking funds or something similar. Not worth while leaving money on deposit at all at the rates you get today.

    Its money I hadnt really counted on, so a bit of risk is fine.
    So I dont mind some risk, but dont want to throw the money away either.


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    #4
    sandra_b
    Registered Users Posts: 246 ✭✭sandra_b


    You should open Regular Savings Account. More info here


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    #5
    Champ
    Registered Users Posts: 677 ✭✭✭Champ


    Hi,
    That's a nice amount to save every month.

    I wouldn't limit myself to just considering Rabo funds either. There's Zurich Life and Standard Life as well which have a good range of funds. Irish Life is of course one of the dominant players on the market.

    There's also other things to consider as well e.g. with Rabo the funds make you obligated to file a self return with Revenue due to the way that their funds are structured (not a problem if you already do it but somewhat of a hassle if you've been purely PAYE up till now). To my knowledge you don't have this issue with other fund providers.

    Other things you may want to consider is the financial safety of the companies where you'll be investing your cash e.g. I believe Moody rates Zurich Life AA- and Standard Life A-.

    Another thing is the compensation schemes should any of the companies default e.g. Zurich Life is only covered by the Irish ICS which is 90% of your investment capped to €20k. Since Standard Life operates as a branch of its parent company it's covered by the UK FSCF which is 90% of your investment with no cap.

    Even though you certainly have cash to spare you'd want to make it work as hard as possible with minimal expense. So you need to consider the charges / costs with whomever you choose. Also different funds have different return potentials with different risk levels so you need to ask yourself what level of volatility you can handle without panicking or basically your appetite for risk versus reward.

    If you're not sure of where to put your cash then you may want to consider the services of an independent financial advisor. Independent been the key word here.

    Alternatively if you're sure of what you want to do and know where you want to put your cash and with whom then be sure to look for brokers that offer execution only services which can usually offer some very good deals in comparison to going directly to the companies you're investing with (yes you might think it odd that it can be significantly more expensive going directly to the company but that's how it is).

    Lastly don't rush into it. Take your time, do your research and you'll have a relaxed / anxiety free mindset once you're commited. You might find that you even enjoyed doing the research and learning all that you did.;)

    Oh the folks at AAM (http://www.askaboutmoney.com/) are probably a good stop if you have any queries on investing in general.


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