bmwguy wrote: »
This is exactly what I do. 2 kids allowances of 140 euro each going into an investment fund managed by HSBC. Plan to leave it there for another 10+ years anyway and it will be for them in the future, education costs/house deposit or whatever. Doing very well averaging about 9% a year. Taxed on gains but sure if I will be paying tax it means I will have gained.
chases0102 wrote: »
Is it a daft/irresponsible decision to put the CB into a Zurich managed, Prisma 4 fund?
Child is 3, have been using Post Office until now, but just noticed the miserly returns.
So essentially a 14/15 year investment. Just wondering if anyone else has done something similar, or am I playing a dodgy game with my son's education fund?
chases0102 wrote: »
Would anyone have any insight into this?
Browney7 wrote: »
My 2 cents is that you need to look at any investment in terms of your overall financial position. So if you've short term debt, it's foolish to be paying interest whilst saving on the other side. Assuming this not an issue for you, you move onto what other options are available to you like paying down the mortgage etc. Clearly you can't liquidate a portion of the house when the time comes so it's prudent to have liquid capital at hand to pay for education. But what are your career prospects - are you on a good salary progression so having cash at hand in ten years won't be a huge issue? Are you maxing out pension contributions and getting tax relief and tax free growth instead of investing after tax income and paying tax on gains?
The fund itself is presumably fine - a one size fits all fund for people who want to get a modest return ahead of inflation but without huge volatility. Is it worth paying the 1% fee per annum to the manger to manage passive equity, which presumably is between a minimum and maximum range depending on the manager's view of the risk inherent in the market? They'll also hold a portion of the money invested in low yielding bonds and cash - could you do this yourself via saving certs etc as you are currently doing?
Rossie11 wrote: »
I am in the exact same one with Zurich. Took it out in aug 2015 and its up 10% approx.
Happy with that.
Nonoperational wrote: »
Ultimately nobody knows what the markets will do. In my opinion it is very unlikely with a 15 year horizon you will come out worse off if you invest in a market tracking multi asset fund. But if you absolutely need the money it may not be sensible. If you can survive without it you may make a hell of a lot more than on deposit.
You need to be ware of the forced 8 year disposal tax though.
bungaro79 wrote: »
I've been looking at investing a lump sum of 10k into something like the Zurich Prisma fund but I've been reading up on ETFs and Index funds and am wondering if this is the way to go now??