Risk of fund closing over long term?

mrcheez

One of my RaboDirect funds is performing terribly, but I don't want to sell as there would be a sizeable loss, so I plan to hold onto it for the long term.

Is there any risk that the fund would "close" at any stage, or at least how likely is that and has it happened to other funds in the RaboDirect range?

mickman

its always a possibility - unlikely but a possibility

thats one of the reasons i stopped using those kinds of funds - you are at the mercy of the company running the fund

arrowloopboy

mrcheez wrote: »

One of my RaboDirect funds is performing terribly, but I don't want to sell as there would be a sizeable loss, so I plan to hold onto it for the long term.

Is there any risk that the fund would "close" at any stage, or at least how likely is that and has it happened to other funds in the RaboDirect range?

If its performing terribly ,why do you want to keep it ?what makes you think it will perform better in the future ?
YOU SHOULDN'T BE INVESTING IF YOU'R UNABLE TO TAKE A LOSS(its a big part of trading/investing)
Guys bought bank shares during the boom at 20 quid and watched and watched and watched till they went to 10 pence.
What i'm trying to say is,you don't have to make your money back on THAT fund ,cut your losses,move on,find something that's performing better.

mickman

arrowloopboy wrote: »

If its performing terribly ,why do you want to keep it ?what makes you think it will perform better in the future ?
YOU SHOULDN'T BE INVESTING IF YOU'R UNABLE TO TAKE A LOSS(its a big part of trading/investing)
Guys bought bank shares during the boom at 20 quid and watched and watched and watched till they went to 10 pence.
What i'm trying to say is,you don't have to make your money back on THAT fund ,cut your losses,move on,find something that's performing better.

True

mrcheez

Well it's beginning to show signs of recovery but I'll wait and see if it drops any further and rethink my options.

gordongekko

mrcheez wrote: »

Well it's beginning to show signs of recovery but I'll wait and see if it drops any further and rethink my options.

go on sure tell us the name of the fund

FernandoTorres

There's very little incentive to invest in these funds in Ireland now with the ridiculously high exit tax and the fact you can't offset losses. I'd be avoiding putting any more money in them.

mickman

FernandoTorres wrote: »

There's very little incentive to invest in these funds in Ireland now with the ridiculously high exit tax and the fact you can't offset losses. I'd be avoiding putting any more money in them.

Yes. I'm closing one now cos its just ridiculous. 35% exit tax on gains, mgt fees to fund managers and takes two weeks to get out !!!

Never again

FernandoTorres

Going up to 41% in January too!

mickman

FernandoTorres wrote: »

Going up to 41% in January too!

U sure ? Didn't hear that . At least cgt is remaining same

mrcheez

mickman wrote: »

Yes. I'm closing one now cos its just ridiculous. 35% exit tax on gains, mgt fees to fund managers and takes two weeks to get out !!!

Never again

2 weeks? Hmm only took me 3 days to withdraw the last time I sold a fund on RD.