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KBC - Start2Invest Product

Comments

  • Closed Accounts Posts: 5,019 Cristiano Thousands Sidewalk


    What are the management fees and on going charges? Taxes are also due. So the return will be more around the 2% or less mark.


  • Registered Users Posts: 3,030 ✭✭✭ Browney7


    What are the management fees and on going charges? Taxes are also due. So the return will be more around the 2% or less mark.

    I'd expect the tax to be a disaster here for regular investment unless KBC handle it for you? Looks no different that an ETF bought via Degiro


  • Registered Users Posts: 4,953 ✭✭✭ caviardreams


    I would imagine KBC look after the tax for you. However, there seems to be no information on fees, not even in the T&C document. Poor transparency imo


  • Registered Users Posts: 21 ✭✭✭ Policy Review


    I would assume KBC would handle to exit tax on this product, after a quick google search can't see any mention of the management fees which is cause for concern. I did see mention of max management fees of 1.9% which is a joke but still quite common among these types of funds. It could be anywhere between 0.85% - 2.0%. Best advice would be to not go anywhere near it, do some research and try and find an INDEPENDENT financial advisor that can get you the best fund for your money.

    Or better yet invest in a index through Degiro like someone previously mentioned. More leg work but you more than likely will see the benefits. Again this will depend on the level of risk you are used to and your investment may go down as well as up.


  • Closed Accounts Posts: 35 ✭✭✭ edit_me


    Quick research tells me that management fee is 1.2%, front end load fee - 2.5%, max redemption fee 5%..... With to 125 euro monthly investment and all taxes I would be very surprised if this investment made any money for retail "investors".
    KBC "forgot" to include 2018 as fund technically lost money last year.
    Degiro isnt that great option as well, as people dont understand risk that comes with investing in very illiquid European analogs of US etfs.
    What I'm saying here - with 125 monthly investments you cant afford to be in financial markets.....
    Anyway - best of luck.


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  • Registered Users Posts: 2,832 ✭✭✭ Poor_old_gill


    You're probably in debt, like everyone! For such small returns- you would be better off just clearing down debt and keeping a nest egg for emergencies rather than chasing small returns in a market that already has little arbitrage


  • Registered Users Posts: 480 ✭✭ FernandoTorres


    Stay away from any investment product offered by an bank in Ireland would be the general principle. They're designed to appeal to people who don't have much knowledge of investing and will slog you with ridiculous fees. The good news is there are plenty of investing books designed for beginners, many already recommended on this forum. Spending a few hours learning could save you thousands down the track.


  • Registered Users Posts: 106 ✭✭ johnjohn3423


    I was looking at these KBC funds and with a KBC extra current account there are no entry or exit fees but this is only guaranteed for 12 months.

    The minimum management fee is 1.2% the average is 1.6% and who knows how high it can go.

    The fees are deducted already from the advertised return rates.

    I would be looking to put away €200 per month into something like the KBC Sivek Global Medium fund which is roughly 55% shares and 45% bonds. From the replies above would it make any sense to do this considering the returns one way or another are not going to be massive.


  • Moderators, Business & Finance Moderators Posts: 7,817 Mod ✭✭✭✭ Jim2007


    I would be looking to put away €200 per month into something like the KBC Sivek Global Medium fund which is roughly 55% shares and 45% bonds. From the replies above would it make any sense to do this considering the returns one way or another are not going to be massive.

    No. Look all of those kind of products are a gimmick, they are there to collect fees for the bank or institution that created them.

    Before you start investing, have you already built up a rainy day on emergency fund? Assuming you have then the best thing to do is buy a few of the standard texts and read up on investing. In the meantime stick all your spare cash ready to action once you have got to grips with it.

    You don't have to buy every month or even every year to make money... some times I make only one trade in the year other times three or four and sometimes none at all.


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