RBS Investment fund - please help !!!

uih039

JoeCrystal wrote: »

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.

<Desperately types quickly to beat Dunston>

It's about "Attitude to Risk". Funds are popular because they generally have lower risk but they are also likely to result in lower reward in the event of a successful investment. They are also popular because they pay commission to advisors and are heavily marketed.

In very basic terms you have to consider whether you have "Low", "Medium" or "High" attitude to risk.

If Low, then go for cash or near-cash investments like gilts or bonds. Initial investment safe, but very little opportunity for significant gains.

If Medium, then Funds (although they also have different risk profiles).

If High, then individual shares.

So, I just bought and sold shares in DSG and made 20% in 2 weeks. It is very unlikely you would ever achieve this with a Fund investment. Sounds great, but I could just as easily have lost the lot - a risk I was prepared to take. I have other direct shareholdings - up and down like a yo-yo.

On the other hand, I have a number of Fund investments which I have held for many years. Some have gone up a lot, some a little and some have dropped. However, none have dropped more than 30% from my initial purchase price.

On the other hand (I seem to have 3 hands ), I hold quite a lot of cash (not literally cash - it's in fixed rate bank accounts) and I know this is safe but will only return me between 5% and 7.21% over the next year.

Investment/saving is about deciding your attitude to risk and then getting a good mix of investments within your chosen category.

If you are considering significant investments then you should consider using an IFA - do not ask your Bank

I've typed far too much so I expect Dunston has beaten me again!

thrupence

dunstonh wrote: »

Dont buy it. Its rubbish..

It could be good or it could be bad, you don't know

Nobody knows....

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

dunstonh

It could be good or it could be bad, you don't know

Apart from the fact it is a bank fund and thats normally enough.

The fund has spent most of its time in the bottom two quartiles performing well under sector average. If you invested at launch your return would have been more than 5 times lower than the sector average. In the last 12 months, the sector average was down 2.46%. This fund was down 12.51%. Thats a big difference in a lower risk sector and thats just against the average. Not the best.

So, whilst future is unknown, its past is pretty sub-standard.

liebe911

Any fund which is done by anyone is falling with the economic conditions worse. so be wise and invest

Blah99

dunstonh wrote: »

The fund has spent most of its time in the bottom two quartiles performing well under sector average. If you invested at launch your return would have been more than 5 times lower than the sector average. In the last 12 months, the sector average was down 2.46%. This fund was down 12.51%. Thats a big difference in a lower risk sector and thats just against the average. Not the best..

Just a side note, RBS now have two sets of funds - the old, legacy ones being run down and the new ones launched at the middle to end of last year. The old ones were awful, but the new ones are looking not too shabby (based on the last data I saw). It's a bit early to say either way but I wouldn't completely rule them out just yet.

Be aware that if you're an "old" RBS fund holder you have to call them up and directly ask to be switched into the new funds. There's no charge etc, but they won't do it unless you ask.

JoeCrystal

@uih039 Thank you, everything is clear to me. Reading that summary on risks are more helpful than reading entire book about investing. I think I will largely stick with cash and bonds for now.

How big the amount of significant investments would you say should involved IFA? Should I open new thread since I am rather hijacking the thread.

uih039

JoeCrystal wrote: »

@uih039 Thank you, everything is clear to me. Reading that summary on risks are more helpful than reading entire book about investing. I think I will largely stick with cash and bonds for now.

How big the amount of significant investments would you say should involved IFA? Should I open new thread since I am rather hijacking the thread.

Sorry, I don't know enough to answer your question as to how much you need to have available for investment to make it worthwhile to use an IFA. I'm sure someone will be along soon to advise. If not, please open a new thread.

Meanwhile you may find my comments on IFAs in this thread useful:

http://forums.moneysavingexpert.com/showthread.html?p=18868823#post18868823

Andrew.