Passively Managed Fund

Brussels Sprout

I used to have some money in some Quinn Life Funds that just reflected certain markets and had no management fees. Those funds are no longer available so I'm wondering are there any similar funds out there in Ireland? I checked out Rabo Investment but all of their funds have management fees (0.45-2.1% per annum).

Liam D Ferguson

Quinn Life funds had management fees starting at 1% per year upwards. It is possible to get passively-managed index-tracking funds (similar to Quinn Life's) from a range of places, including New Ireland, Irish Life, Friends First but all will have annual charges.

arrowloopboy

Brussels Sprout wrote: »

I used to have some money in some Quinn Life Funds that just reflected certain markets and had no management fees. Those funds are no longer available so I'm wondering are there any similar funds out there in Ireland? I checked out Rabo Investment but all of their funds have management fees (0.45-2.1% per annum).

No wonder Sean ended up in the poor house,managing funds for free,ooh and I forgot ,he didn't understand how his CFD position on Anglo worked ,numpty:rolleyes:.

tennisfennis

Have you ever considered investing the money yourself instead of giving it to someone you dont even know and letting them make the decision?

Liam D Ferguson

tennisfennis wrote: »

Have you ever considered investing the money yourself instead of giving it to someone you dont even know and letting them make the decision?

I think you're confusing actively-managing funds with passively-managed funds. What you describe is active management. The original post was enquiring about passive.

funny_fecker

Liam D Ferguson wrote: »

I think you're confusing actively-managing funds with passively-managed funds. What you describe is active management. The original post was enquiring about passive.

if i went out and bought an S+P etf through my stock broker account , i would be the one investing my own money yet an S+P etf is a passive investment

Liam D Ferguson

funny_fecker wrote: »

if i went out and bought an S+P etf through my stock broker account , i would be the one investing my own money yet an S+P etf is a passive investment

Yes, an S&P ETF is passive. What tennisfennis was posting about was "giving it to someone you dont even know and letting them make the decision" which is a loose definition of active.

funny_fecker

Liam D Ferguson wrote: »

Yes, an S&P ETF is passive. What tennisfennis was posting about was "giving it to someone you dont even know and letting them make the decision" which is a loose definition of active.

what some people dont realise is that if you hand over money to a finance house , they themselves often just stick it in a passive fund like the S+P , it may have a different title but they are essentially charging the customer 2 or 3% for a product which costs them .05%

why not simply cut out the middle man , open a brokerage account and buy the broad market oneself , most managed funds fail to beat the likes of the s+p on average anyway

Liam D Ferguson

funny_fecker wrote: »

what some people dont realise is that if you hand over money to a finance house , they themselves often just stick it in a passive fund like the S+P , it may have a different title but they are essentially charging the customer 2 or 3% for a product which costs them .05%

why not simply cut out the middle man , open a brokerage account and buy the broad market oneself , most managed funds fail to beat the likes of the s+p on average anyway

For a buy and hold investor who knows what they're doing, this is a very good idea. You'd need to be aware of the difference in tax treatment between ETFs and funds. Depending on the domicile of the ETF it may be Exit Tax or CGT. You'd also need to be aware of the underlying security of the ETF as there are literally thouands available.

funny_fecker

Liam D Ferguson wrote: »

For a buy and hold investor who knows what they're doing, this is a very good idea. You'd need to be aware of the difference in tax treatment between ETFs and funds. Depending on the domicile of the ETF it may be Exit Tax or CGT. You'd also need to be aware of the underlying security of the ETF as there are literally thouands available.

the liquidity of the instrument is also important , any of the following s+p etfs have tonnes of volume however

spy
voo
ivv

eeepaulo

I have been considering an index tracker, this link is full of good information on them, although tailored to the UK brokers the generic info seems good


http://monevator.com/category/investing/passive-investing-investing/