Rabodirect Investments - Anyone made money yet?

bravo

Hi Guys,
I'm considering a Rabodirect investment account. I've read their website and is it as simple as - decide how much to invest - pick the fund - pay the entry and exit and annual account maintenance + DIRT I guess on exit - and that's it?
Has anyone cashed in an investment and made some money? What is the average amount you guys are investing?
Thanks for the responses in advance. I'm new this investing...as if you didn't guess!

silverharp

I have their world energy fund (€25K), bought in Nov05 and is up about 20% . I thought it was a good hedge against rising energy costs, I don't feel so bad about the rising petrol prices ;-) You don't pay dirt as such, it's a CGT 22% of the profits (I think)

Alot of the energy and mining markets are up alot since the beginning of the year, I'd average in to be on the safe side, pay x amount in every month and if there is a tumble add more in or just keep going. 5-10 year investment.

7mountpleasant

ya bought about four funds around november, up about 14-16% overall with the pan european property and the emerging markets ones the best

blobert

I'm €400 up according to their website on investment of about €6,000 made about 2 months ago. Henderson Pan european property and the Emerging Europe funds have been the best for me so far.

drdre

blobert wrote:

I'm €400 up according to their website on investment of about €6,000 made about 2 months ago. Henderson Pan european property and the Emerging Europe funds have been the best for me so far.

400 does not sound like alot of money over 2 years investment. and especially when you invest 6k

ai ing

He said 2 months not years.

WexCan

So is there a general best-fund that people have made money on? I have 7k to shove in for a while until I decide what to do with it - the World Energy and European Property funds seem to be the favourites but the world energy one is apparently high risk etc etc

7mountpleasant

Personally I think the Japenese equity one could be worth a bit of punt.

WexCan

The Merrill Lynch one? Looks interesting but doesn't seem to be very highly rated. Seems a bit more risky than property too but then again I'm not as clued up as I'd like to be.

el diablo

what about this month's Fund of the Month- Merrill Lynch IIF Japan Opportunities Fund.

anyone got any opinions on it?

drdre

anyone here have any experience from these funds as i have 8k to invest for a few months(2-3)where should i invest or should i just keep it in the credit union.

Sandals

yeah I am in a similar boat willing to invest up to 8k in rabo,

I am for some reason attracted to teh emerging europe one, but would greatly apreciate any/lots of advice to questions such as, should i invest mailnly in one/two or in many,
which options are the best are perhaps more importantly the worst,
is there any risk of any of them collapsing and being worth nothing etc.?

Hitchhiker's Guide to...

Sandals wrote:

yeah I am in a similar boat willing to invest up to 8k in rabo,

I am for some reason attracted to teh emerging europe one, but would greatly apreciate any/lots of advice to questions such as, should i invest mailnly in one/two or in many,
which options are the best are perhaps more importantly the worst,
is there any risk of any of them collapsing and being worth nothing etc.?

Rabobank itself is one of the safest banks in the world. It credit rating is AAA/A-1+ by S&P, Aaa/P-1 by Moody's and AA+ by Fitch. These make it phenomenally safe.

Regarding the specific investments. There is a chance of any investment being worth nothing. But in an investment fund spread over a number of different investments, this is extremely unlikely. Always best to spread your investments as widely as possible, though.

drdre

so whats the best option in rabo bank.i have around 8k and want a account that i can withdraw money on a short notice.can anyone recommend any safe investment.thanks

Mayshine

drdre wrote:

so whats the best option in rabo bank.i have around 8k and want a account that i can withdraw money on a short notice.can anyone recommend any safe investment.thanks

Dude, it aint that simple, not such thing as a best option otherwise we'ld all be doing it

How much risk are you willing to take - Since you seem scared of a drop in your money why not open a bond fund with Rabo - less volitile fund with a safer rating - still should see 4-5%

If you are willing to take more risk, why not throw half in bonds and half in something else that you feel is on the up.

Remember, you have entry and exit fees with rabo (as with anyone) - 1.5% total (0.75 in, 0..75 out).

I'm in with 16k at the moment and will be increasing this now and again, and chucking my SSIA in on top of it also. Then again, I don't need access to the money and feel like taking some risk with it - 3.35% is not really much of a return for me.

Edit - just read you only have 2-3 months to invest for - presumably you need access to your 8k in 3 months, so your only real option is to just stick in a savings account.

Hitchhiker's Guide to...

good point mayshine - if the investment is only for 2-3 months, then it would be far too risky to even put the money in a bond tracker.

As a general theory, the longer you are investing for, the more you should invest in equities - hence the fact that the government pension saving scheme (IPRF) is 80% invested in equities as they don't need the money for another 30 years.

The closer to your cashing out window you get, the more you should move into bonds and savings accounts. It's known as the "life cycle theory of investing". Think it was developed by a guy called Franco Modigliani if you want to google it for more info.

With a 2-3 month horizon you are opening yourself up for a whole load of negative surprises if you invest in equities...

dave13

So anyone have any recommendations for funds at the moment?I'm looking at the emerging europe and the pan european property funds. What do people think of the world energy fund and its current price?

Mayshine

I made €175 yesterday, probably more than I make after tax for a days work at the moment

el diablo

Mayshine wrote:

I made €175 yesterday, probably more than I make after tax for a days work at the moment

where? in which fund?

Mayshine

el diablo wrote:

where? in which fund?

I'm in a few different funds - wouldn't be caught just investing on one

Energy / Japan Opps / AsiaPac property / High Yield bonds

Going to buy into some mining and emerging markets today aswell.

I'll probably lose it all tomorrow anyway - I'm in for a while so I'm happy to mess about with these investments. I prefer the fluctuating numbers to the low fixed rate returns anyway

Beta2

I filled out the online app. today.

I'm gonna put 1K into the energy fund and see how it goes. If it goes well I might diversify with a few more K's into different funds

7mountpleasant

The one I was surprised at was the Pan european property it has risen a lot in the past three months, put a couple of k into it thinking it would be steady as she goes and it has gone up over 20%

el diablo

7mountpleasant wrote:

The one I was surprised at was the Pan european property it has risen a lot in the past three months, put a couple of k into it thinking it would be steady as she goes and it has gone up over 20%

ah ****, I was going to pump some funds in there a while ago but I didn't.

trying to find a few short term funds woth spending in now...

maybe High Yield Bonds and a couple of others....

PDelux

Reading this thread and others it seems alot of people have "a few €k" to invest here and there. Its quite interesting, when you read how much Irish people are in debt etc.
I assume these people with a few k are debt free. I wonder though do they have a mortgage? or is the ultimate goal to multiply the few k to a few 10k and get on the property ladder, cos i assume the average age is early 20s.?

Mayshine

Personnally, I don't have much interest in purchasing a house. I'm debt free.

I get a lot of freedom not having a single loan repayment. And I can leave my cash in longer term slightly riskier investments and with a little luck get better returns than property without being tied down or burdened with a fixed abode, scary 30 year debt.

Maybe if I ever figure out where I want to live I might buy, but to be honest I cannot really see the point for me

Beta2

PDelux wrote:

Reading this thread and others it seems alot of people have "a few €k" to invest here and there. Its quite interesting, when you read how much Irish people are in debt etc.
I assume these people with a few k are debt free. I wonder though do they have a mortgage? or is the ultimate goal to multiply the few k to a few 10k and get on the property ladder, cos i assume the average age is early 20s.?

Yea thats my situation, Although I have no intentions to buy a house in the immediate future as I thinnk I'll get better value in 18 - 24 months time. I have more than enough for a deposit but I think my money will be safer and get a better return from rabo.

Hitchhiker's Guide to...

Following article in the Sunday Tribune today on RaboDirect, interesting reading... :

RaboDirect leads the way in 'exotic' stock market gambles

Niall Brady

INVESTING in the stock market is risky enough without the added gamble of losing out to currency swings. This is why the experts advise us to stick close to home by investing within the eurozone.

Buying shares in AIB or other companies in the benchmark Euro Stoxx 50 index of European blue chips is no guarantee of money. But it's a safety net if the dollar tumbles or the markets lose confidence in Asian currencies.

Irish investors seem to be throwing caution to the wind, however, if the experience of internet bank RaboDirect in its first year of business is any guide.

With a minimum investment of 100, by far the lowest on the market, its motto is anyone can be an investor. But customers could be following the latest flash-in-the-pan rather than a well-thought-out strategy suitable for people dipping their toes in the water.

RaboDirect's top seller is the Emerging Europe Fund, managed by Merrill Lynch.

At first glance, it is not hard to see why: people who got in a year ago have doubled their money. But it is a hugely risky punt, heavily exposed to Russia's booming if unstable commodities markets.

Key holdings include oil company Lukoil, gas giant Gazprom and Norilsk Nickel, a mining company. If you are lucky, these stocks could move you a step closer to the vast riches accumulated by Russia's oligarchs. But they are no place for investors still wet behind the ears.

Given Ireland's appetite for bricks and mortar, it is no surprise property is a popular choice with RaboDirect's customers. A recent addition to the range of funds, the Henderson Pan-European Property Fund is already a best-seller.

It posted more than 50% growth over the last year and, rather than investing directly in property, it buys shares in companies that buy properties.

But with European interest rates on the rise, a question mark hangs over the amount of upside left in the property market. "Even though property has had a good run, we feel there's a lot of fuel still in the tank, " says Steven de Vries, head of Henderson's Dutch office.

He says property is a good counterweight for investors who have loaded up on stocks and shares. But if the market takes a nosedive, Henderson's property companies are unlikely to escape damage.

Asia is the next frontier for RaboDirect's customers.

The Robeco Asia-Pacific Equities Fund has been a best-seller and last week the bank added two more choices: an Asian property fund and a Japanese equity fund. If they fail to float your boat, RaboDirect offers something even more exotic. How about gold, mining stocks or a fund that invests only in banks? If not, you may be interested in the health care and renewable energy funds RaboDirect has in the pipeline.

As an execution-only outfit, RaboDirect does not give investment advice and general manager Greg McAweeney dodges any question about where he would park his own money.

Rather than risking their life savings, he says customers are taking advantage of RaboDirect's low 100 minimum investment to have a little flutter on something exotic.

"The funds that tend to be the most popular are the riskier ones, " he says. "But if you only invest the minimum 100, you don't have too much to lose."

The more level-headed investor will probably stick with RaboDirect's PanEuropean Equity Funds, a new addition that has still to make it to the best-seller list. Managed by Henderson, it holds 1bn work of stock in more than 50 European blue chips with emphasis on financial institutions such as Axa, UBS and Deutsche Bank.

Most of the money is invested in the eurozone, cutting investors' exposure to currency swings, although British companies make up 19% of the fund while Swiss multinationals account for 15%.

McAweeney says an Irish equity fund will be added as soon as he can convince one of the local fund managers to accept investments as low as 100.

However questionable their investment strategies, RaboDirect's customers have at least avoided the cardinal sin of allowing their money rot away on deposit, where it would barely keep pace with inflation.

Based on past returns, somebody investing 50,000 in the stock market today might expect to have 67,000 after five years and close to 90,000 in a decade.

But the same money on deposit earning 2% interest would only be worth 55,000 after five years and 61,000 after 10.

"Savers can lose 2,000 3,000 a year on a 50,000 investment if they opt for a deposit account and, the longer they leave it, the bigger the loss, " said Diarmuid Kelly, chief executive of the Professional Insurance Brokers' Association.


copyright Sunday Tribune

Garth

Roundtower2 wrote:

McAweeney says an Irish equity fund will be added as soon as he can convince one of the local fund managers to accept investments as low as 100.

Heh. Not convinced on that one.

Anyway I enjoy using Rabo. It's easy to understand and all the info is there. No need to listen to a pitch or anything. Just read, google, learn, invest. Up or down, its ok. I don't play lotto, hardly drink, quit smoking. I'm allowed to have some fun with me moolah.

I only have a few grand invested, but already I've earned a bit. For the first two weeks everything (heavily pick-and-mix type) went down so I've acclimatised myself to the risk. It's still making more than in a savings account (even Rabos).

Anyone considering, I'd say go for it but don't invest anything you can't afford to lose entirely. Not likely to happen but no point getting ulcers over your first dip in the pool.

slave1

yep, individual choice at the end of the day, I bought some of their investments at the beginning of Feb and when I checked at the weekend am 16% up, not bad over 3 and a bit months

m_stan

I opened my account last month but have yet to test the waters. I have potentially several 10's of K to invest since my mortgage is fixed for another 12 months and as mentioned above, I am losing money by having it on deposit. My intention is to grow my lump sum more than it would on deposit and cash in after 12 months and pay it off my mortgage.

I guess the key thing with some of the riskier high growth investments like some of those mentioned in the above article, is to know when to get out before you potentially lose your shirt. Of course the same thing applies to all investments but in particular to the ones that can shoot up and down at a moments notice.

Good luck to all !

Scruff

I have about €15k i can invest in some form or another that has been sitting is a credit union account growing by sweet fanny adams.

From Article above wrote:

RaboDirect's customers have at least avoided the cardinal sin of allowing their money rot away on deposit, where it would barely keep pace with inflation.

Guily as charged

I really need to pull my finger out and do something with it. Looking at house prices i think i've left it go way too late to jump on that bandwagon so i have tentatively started looking at fund investment. I could leave it in there for 1 to 3 years.
If I was to go down this route would a Robodirect Investment account be suited to me?
I would possibly spilt the €15k in 5k saving account @ 3.35% and invest the other 10k in various funds.

Any advise???

bravo

Hi All, Thanks for the feedback so far. I finally invested in Rabo - went for henderson european property and emerging markets.
I took some time to work out possible returns based on possible growth and if anyone's interested these are my calculations per €100 invested uin henderson european property.
Entry €0.75
Assuming a 10% growth - Exit = €0.82, Annual fee (presumably this is paid regardless of how long you invest for, even a few days?? and is charged on full amount? 1.2% on this fund) = €1.23, Income tax when you declare it on the growth 23% = €2.30
So if these calculations are correct a 10% gross growth in your investment equals roughly 4.8% net, and 15%/20% gross equals 8.5%/12.3%

Mayshine

Interesting time to buy in since the markets have dropped 5% in the last few days. I'm going to try and buy a little more soon. Just have to time it correctly

Also your 10% assumption is too high. That would most certainly be the top end. 8% would be more realistic

Wolfmother

I am interested in the emerging european markets one, is anyone in it?
Is there any website which tracks it, or can you tell me roughly how is it doing, I have just set up my account but dont want to buy in now, if it has been rising over last few days, would rather buy when it's low.

whizzbang

two weeks ago I was up 10% in these, now I'm breaking even!

Watch out, if you want to sell you have to put your order in before a certain time for it to be sold that day!

The cut off times are
Merril Lynch 10am
Robeco 8am
Henderson 11am.

I put mine for sale at lunch time and they took a day and a half to sell, thus loosing me €400, should have read the damn small print.

Mayshine

You can track the merril lynch funds here

Merril Lynch Funds

Wolfmother

thank you very much Mayshine, that's great.

Wolfmother

I can't log in,

When i go to the account log-in page the orange button is not a button for me and i can't click it any ideas?

el diablo

Wolfmother wrote:

I can't log in,

When i go to the account log-in page the orange button is not a button for me and i can't click it any ideas?

it's ok for me. try refreshing the page and see can you log in...

el diablo

so is it a good time to invest in Rabo funds now that markets have dropped?

but I'm just not sure which ones to choose...

any ideas for some short term investments?

Wolfmother

and is the digipass connected to the computer?

el diablo

Wolfmother wrote:

and is the digipass connected to the computer?

well yes, I just logged in again. cak the helpline for assistance..

1850 88 22 22

Wolfmother

how to you connect it to the pc? usb cable?

el diablo

Wolfmother wrote:

how to you connect it to the pc? usb cable?

no the digipass is not connected to the PC in any way. it just generates random passwords for logging in to Rabo.

Wolfmother

ok cool.

garred

Was going to open a Rabo savings account but also try their invesments. Just a question how do you guys investigate what to invest in: google, tips, media ?

Sandals

gut instinct mainly, emergingeurope, can't fail.

el diablo

garred wrote:

BAN THIS SMILIE!!!:rolleyes: :rolleyes: :rolleyes:

why you want to ban that smilie? that's my favourite..:rolleyes:

el diablo

Sandals wrote:

gut instinct mainly, emergingeurope, can't fail.

but Emerging Europe has a very high risk rating . why you say it cannot fail?

Sandals

It just seems like the perfect investment.

cianr

emergingeurope, can't fail.

Quotes like these make me worried!