Buy & Hold Investment Strategy

gilly2011

Part of my investment strategy for 2011 and beyond is based on a buy and hold stategy. My plan is to invest monthly (euro cost averaging) in broad based index funds.

Having examined Quinn life, Rabo and other mutual fund providers i am concerned that potential returns will be eaten up in excessive costs/charges ect.

I would greatly appreciate any advice on strategies to reduce my exposure to costs following this strategy.

I have an account with Keytrade and was considering alternatives taking into account their relatively low trading charges.

soddy1979

I have a Keytrade account also. Some things to consider:

1) Make sure you know how much your entry and exit fees will be as a percentage of the amount you are going to invest. Keytrade are relatively cheap in relation to Irish brokers, but that doesn't mean you won't get killed on fees if you are only opening a EUR 500 position.

2) I don't know much about Quinn Life, but Rabodirect charge a 1% entry fee & 1% exit fee which is quite good if you are at the lower end of the investment spectrum. You should still review the fund providers prospectus though, but in general, their fund providers have fees that will appeal to a retail investor.

Basically, if the sum of the charges that Keytrade will charge (include the ETF fee in that) are less than the sum of charges Rabobank (don't forget the management fee/incentive fees) go with Keytrade, otherwise go with Rabo.

irishh_bob

soddy1979 wrote: »

I have a Keytrade account also. Some things to consider:

1) Make sure you know how much your entry and exit fees will be as a percentage of the amount you are going to invest. Keytrade are relatively cheap in relation to Irish brokers, but that doesn't mean you won't get killed on fees if you are only opening a EUR 500 position.

2) I don't know much about Quinn Life, but Rabodirect charge a 1% entry fee & 1% exit fee which is quite good if you are at the lower end of the investment spectrum. You should still review the fund providers prospectus though, but in general, their fund providers have fees that will appeal to a retail investor.

Basically, if the sum of the charges that Keytrade will charge (include the ETF fee in that) are less than the sum of charges Rabobank (don't forget the management fee/incentive fees) go with Keytrade, otherwise go with Rabo.

regarding paragraph number 2

afaik , rabbo charge .75% upon entry and exit

neris

Would you try ETFs aswell? You can trade/invest through a broker but once again charges

Shauny2010

Why call it a buy and Hold strategy you should call it a buy and hope strategy:D

poodles

gilly2011 wrote: »

Part of my investment strategy for 2011 and beyond is based on a buy and hold stategy. My plan is to invest monthly (euro cost averaging) in broad based index funds.

Having examined Quinn life, Rabo and other mutual fund providers i am concerned that potential returns will be eaten up in excessive costs/charges ect.

I would greatly appreciate any advice on strategies to reduce my exposure to costs following this strategy.

I have an account with Keytrade and was considering alternatives taking into account their relatively low trading charges.

Why not research some undervalued companies, open a TD Waterhouse account and buy and hold while reviewing every month or so?

Trades on TD are €20 per trade.