Fee Based Investment/Savings Funds?

nice_guy80

Hello

could someone direct me to a fee based Investment or Savings Fund?

most companies seem to be % based

thanks

bmwguy

Are you looking for a flat rate savings/investment, like €1000 no matter what returns are generated? I'm afraid I have never heard of one, it's generally not how fund managers work but I do know of one for very low % costs probably lower than you have come across online.

If fund managers perform well, they have to be paid well hence the % charge.

nice_guy80

bmwguy wrote: »

Are you looking for a flat rate savings/investment, like €1000 no matter what returns are generated? I'm afraid I have never heard of one, it's generally not how fund managers work but I do know of one for very low % costs probably lower than you have come across online.

If fund managers perform well, they have to be paid well hence the % charge.

ok.
what is the standard % charge for investment funds?

Nody

nice_guy80 wrote: »

ok.
what is the standard % charge for investment funds?

0.1% up to 5% and higher; honestly anything beyond 0.5% is unlikely to be worth to look at twice.

bmwguy

nice_guy80 wrote: »

ok.
what is the standard % charge for investment funds?

I have one charging 0.5% annual management charge, I set it up probably to use as children's education fund. Have it with the guy who does our workplace pensions. There were initial setup charges that others didn't but only 0.5% annual charges now. Some other ones were 2% or so, not huge now but as fund grows larger the 0.5% will be much much better.

It's growing well too, about 9% per year as far as I know, haven't got this year's statement though. I'm going to leave it go for another 10-15 years anyway. It's invested by HSBC.

nice_guy80

Ok.
So the key thing is to shop around for lower % fees?

bmwguy

nice_guy80 wrote: »

Ok.
So the key thing is to shop around for lower % fees?

Yeah like my projections are to build a fund of approx 150,000 over 15 years. When that fund reaches 100k the 0.5% charge means I will pay 500 Euro a year in charges, a 2% charge would be 2,000 a year in charges, it's based on the fund value they are managing. That difference starts to add up.

I paid a bit extra on start up charges compared to the higher % charges of other funds but they are done and dusted now, it initially didn't sound that appealing but over the term I am saving when I ran the numbers it made sense. He made it clear to me it wasn't suitable for a short term savings plan, more like 7 or 8 years minimum. Some nice bonuses in it too if I stay 10 years or more which my circumstances allow me to.

nice_guy80

Yeah.
Plus some schemes have fees on contributions, upon exit, on fund management costs

Is there a website that compares investment products?

bmwguy

nice_guy80 wrote: »

Yeah.
Plus some schemes have fees on contributions, upon exit, on fund management costs

Is there a website that compares investment products?

I don't think so, its a minefield! . I just went with a guy I trusted, others in work went with him decades ago for same purpose and have exited and are very happy, that's what clinched it for me. Good communication from him anytime I want it too, my pension is invested in same fund so it's all growing the same.

nice_guy80

bmwguy wrote: »

I don't think so, its a minefield! . I just went with a guy I trusted, others in work went with him decades ago for same purpose and have exited and are very happy, that's what clinched it for me. Good communication from him anytime I want it too, my pension is invested in same fund so it's all growing the same.

send me on a name/number by pm please
I'm currently talking to a few providers
cheers

bmwguy

nice_guy80 wrote: »

send me on a name/number by pm please
I'm currently talking to a few providers
cheers

I'll send it on to ya I'll dig out his card

Francie Barrett

Nody wrote: »

0.1% up to 5% and higher; honestly anything beyond 0.5% is unlikely to be worth to look at twice.

In most cases, I would agree. Fees are generally very, very bad. On very rare occasions though, a fee can be worth paying. For example, I have some money with Fundsmith Equity who charge a 1% fee. They have an outstanding track record and they aren't index-huggers in disguise.

newacc2015

bmwguy wrote: »

I have one charging 0.5% annual management charge, I set it up probably to use as children's education fund. Have it with the guy who does our workplace pensions. There were initial setup charges that others didn't but only 0.5% annual charges now. Some other ones were 2% or so, not huge now but as fund grows larger the 0.5% will be much much better.

It's growing well too, about 9% per year as far as I know, haven't got this year's statement though. I'm going to leave it go for another 10-15 years anyway. It's invested by HSBC.

In a very low yield environment, the difference between 0.13% on a Vanguard ETF and 0.5% on what you are paying will make a difference in the long run. 0.5% isnt horrific, but it could be lower

OP if you use an ETF that domiciled in the US it will generally be taxed like a capital gain. So you can gain €1270 per year tax free

TiGeR KiNgS

newacc2015 wrote: »

In a very low yield environment, the difference between 0.13% on a Vanguard ETF and 0.5% on what you are paying will make a difference in the long run. 0.5% isnt horrific, but it could be lower

OP if you use an ETF that domiciled in the US it will generally be taxed like a capital gain. So you can gain €1270 per year tax free

for clarity the €1,270 is not accumulative.

nice_guy80

How does 1% management fee on a lump sum investment account sound?
Its a rating 4 on risk

and 1.25% management fee on a regular savings investment account?
rated 4 on risk as well

have the lump sum account ready to go just to transfer money into it.

bmwguy

nice_guy80 wrote: »

How does 1% management fee on a lump sum investment account sound?
Its a rating 4 on risk

and 1.25% management fee on a regular savings investment account?
rated 4 on risk as well

have the lump sum account ready to go just to transfer money into it.

Sounds high to be honest, they are based on fund value so as your fund gets bigger the management charge is more.
The bigger the fund and the longer you invest for, the better gains you can get from a better charging structure.
Get projections from your potential providers based on the same premium paid in and same growth rate over the same period. You have like for like then.
Compare the projections and that will show you the effect of their differing charges then make a call.

nice_guy80

bmwguy wrote: »

Sounds high to be honest, they are based on fund value so as your fund gets bigger the management charge is more.
The bigger the fund and the longer you invest for, the better gains you can get from a better charging structure.
Get projections from your potential providers based on the same premium paid in and same growth rate over the same period. You have like for like then.
Compare the projections and that will show you the effect of their differing charges then make a call.

Ok.
Could you give me a comparison with a similar type product?
Cheers

bmwguy

nice_guy80 wrote: »

Ok.
Could you give me a comparison with a similar type product?
Cheers

Not really I don't have that info but I changed my pension from a 1% PRSA to a 0.5% workplace pension. Based on what I am paying in and length of time to retirement the reduction in charges would add about 25k to my final pension fund, just for switching, not taking employer contributions into account. Your savings scheme will almost definitely be shorter term so differences will not be as much.

I set up a medium term savings plan (10-15 years is my plan) at same 0.5% rate.

nice_guy80

Ok.
this is the product I've been looking at
https://www.zurichlife.ie/funds/fund-products/multi-assets/prisma-funds/prisma-4-tata


I've also been recommended a few lump sum Acorn investment products through HSBC
anyone got any experience with these?
cheers

Nody

For the life of me I can't find the management fee for the Prisma funds; they make note of how the results are before fees etc. but no where in any documentation can I find what the fee is which makes me very suspicious. I'm also not very impressed with a goal to do 5 to 10% a year when index funds tend to average 10%+ at most likely cheaper rate.

nice_guy80

I've been offered 1% management charge with 101% allocation with Zurich