RBS Investment fund - please help !!!

mally1972

:rolleyes: I need advice regarding savings in the RBS investment fund with extra income.
Are they safe now they are part nationalised ? Please help !!!
Its so difficult to know what to do !!

sh856531

Why are you asking about an RBS fund in particular? Do you already have it?

There are almost certainly better funds out there. Thats not to say that your RBS one sucks - but if you provide more info on your situation I'm sure someone will be happy to help

Best Regards

S

uih039

mally1972 wrote: »

:rolleyes: I need advice regarding savings in the RBS investment fund with extra income.
Are they safe now they are part nationalised ? Please help !!!
Its so difficult to know what to do !!

I presume you are referring to the safety and security of RBS as an institution rather than whether your particular fund will go up or down.

RBS is absolutely 100% safe. It is inconceivable that the government would let it or any major UK bank fail. As it is now part nationalised it is much safer than ever before.

Also, please note that fund investments are ring-fenced in the name of the investor. Even if RBS went out of business (which it won't), your investment would be safe.

If I have misunderstood and you are trying to seek advice as to whether the specific fund you are invested in will go up or down, then I'm afraid I can't help!

Please relax - RBS is 100% safe.

Andrew.

dunstonh

I need advice regarding savings in the RBS investment fund with extra income.

Dont buy it. Its rubbish.

Are they safe now they are part nationalised ?

No different to what they have always been.

uih039

dunstonh wrote: »

No different to what they have always been.

Yes, I agree, and I withdraw my comment:

As it is now part nationalised it is much safer than ever before.

RBS was 100% safe and still is.

dunstonh

Just to expand, unit linked funds are ringfenced away from the assets of the company. You are not investing in RBS but in the fund which in turn invests in shares, corp bonds property or whatever.

Investments (unwrapped or in ISA) have investment FSCS protection but its really of use in cases of fraud because the administrator (RBS in this case) cant get their mits on your money even if they wanted to.

This is ignoring the fact that nationalisation is the likely outcome in any failure now so its a non-issue.

JoeCrystal

Just wondering, it is possible for funds to crash? I mean, can they go bust?

dunstonh

Just wondering, it is possible for funds to crash? I mean, can they go bust?

it would require every asset they invest in to fail. So its technically possible. However, funds spread the assets which is one of their marketing points. Also, in any decent portfolio that utilises a range of funds you usually find you end up with no more than 1 or 2% in any one asset. So, the chances of full loss then are virtually zero.

If you invest badly though and use just one fund then you increase the odds but its still pretty remote.

uih039

JoeCrystal wrote: »

Just wondering, it is possible for funds to crash? I mean, can they go bust?

In theory, yes; in practice, no.

If a fund invested in a very small number of shares and all of those shares became valueless because the company went bust, then the fund would have no value.

The whole point of funds is that they spread risk across many shares. I'm not familiar with this RBS fund but I expect it holds many different shares, probably hundreds. ALL of these would have to go bust which is never going to happen.

uih039

Dunston beat me to it.

Must learn to type faster.

JoeCrystal

Is that so... I can see why funds are so popular with investors. So what are more popular, investing in funds only or shares only or both? It make sense to have both.