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First time investor shocked by charges.

  • 22-05-2014 7:50pm
    #1
    Supup
    Banned (with Prison Access) Posts: 101 ✭✭


    I'm considering putting €50-75 a week into a uint linked fund but am shocked by the charges involved.

    I've been looking at AIB and Irish Life products and eventhough they are upfront about the costs, how are they attractive given the possibility of losing heavily aswell as gaining?

    One of the sample tables based a return of 5% a year and the costs, combined with the 41% DIRT made it look very suspect.

    Are there products or avenues that are nore cost effective?


Comments

  • #2
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,430 CMod ✭✭✭✭Pawwed Rig


    Would you try a trading account? Capital Gains tax is lower than DIRT.


  • #3
    Supup
    Banned (with Prison Access) Posts: 101 ✭✭Supup


    Pawwed Rig wrote: »
    Would you try a trading account? Capital Gains tax is lower than DIRT.

    I've not explored them to be honest. Are they difficult to set up? Are they widely available?


  • #4
    Browney7
    Registered Users, Registered Users 2 Posts: 3,100 ✭✭✭Browney7


    If you took out a trading account and bought an etf etc you would pay tax at 41% on any gain on each fund and you'd have to manage the tax calculation yourself.

    What charges are on the Irish life policy? Is a broker selling you the policy? One of the main reasons for the high charges would be the broker commission.


  • #5
    tennisfennis
    Registered Users, Registered Users 2 Posts: 29 ✭tennisfennis


    Agreed - I would learn to invest yourself and forget about funds. Any fund that someone can invest in with less than €5m there is a good chance it is run by a second rate manager who you could easily outperform yourself. Its better to have the control yourself


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