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Rabo, fund advice please...

  • 02-12-2008 9:57pm
    #1
    Zascar
    Moderators, Motoring & Transport Moderators, Music Moderators Posts: 12,781 Mod ✭✭✭✭


    A bit less than a year ago I put a few grand into Rabo managed funds... China, Mining and Emerging Stars. Couldn't have picked a worse time. I was down 20% within a few months, and now I'm down over 50%. They were medium term investments anyway, but I'm disappointed.

    I was considering cashing out to avoid bigger losses but didn't. Mistake. Now I'm wondering if I should now, or shift funds.

    I know no one has a crystal ball, but what would you do if you were me?


Comments

  • #2
    Aglomerado
    Registered Users, Registered Users 2 Posts: 5,785 ✭✭✭Aglomerado


    I'm in a similar situation... but only invested a modest €500 18 months ago as an experiment across a number of funds (China/ India/ Pan-European). Like you I'm down about 50% on some of them to about €280, but I'm probably going to hold tight until things eventually (!?) pick up. (Wish I'd sold this time last year when it was worth €650!)


  • #3
    soddy1979
    Registered Users, Registered Users 2 Posts: 284 ✭✭soddy1979


    I was in the same situation. I cashed a few weeks ago and I'll hold it in cash until the market turns around.


  • #4
    Time Magazine
    Registered Users, Registered Users 2 Posts: 8,452 ✭✭✭Time Magazine


    If it's medium-term (~5 years), I'd close your eyes and wait it out. What's lost is not going to saved by selling out now. Generally people change their minds about term (e.g. changing a 5 year horizon to 1 year) when prices go up, so I wouldn't change the plan because you're afraid they'll go down. If I was in your position I'd be more confident of them going up rather than down over the next 4 years.

    Shares going down 10% hurt more than the happiness you receive when they go up 10%. So just don't look. Wait it out for a year and have a look then.


  • #5
    soddy1979
    Registered Users, Registered Users 2 Posts: 284 ✭✭soddy1979


    Nothing wrong with cutting your losses and cashing now (pay a 0.75% exit fee) then reinvest when the market turns (pay a 0.75%) entry fee.

    I agree you will miss some upside waiting for the market to turn, but you could also suffer more downside hanging in there!

    Look up the disposition effect.

    At the end of the day nobody know what you should do for sure. If I did I'd be the worlds best paid investment manager:D


  • #6
    Dubh Geannain
    Registered Users, Registered Users 2 Posts: 3,553 ✭✭✭Dubh Geannain


    I had positions in two different Rabo funds about two years ago. Oppenheim Growth fund and I can't recall the other one off the top of my head. Got out of both just before summer '07 with a 4% loss altogether. Wasn't much cash involved, about 1k (just a tester), but I'm bloody glad now I got out when I did.

    It really depends how long you were planning to hold for and whether you need the funds in the short term, but I'd be inclinded to agree with Soddy. Easy to say in hindsight you should have cut your losses earlier, but I've been guilty in the past myself of holding losing positions past my stop loss :o


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