Looks an attractive time to invest in oil

Hatone

Thinking of investing in CF Junior oils fund as prices have pretty much bottomed - can't see them dropping much. See graph screen shot below:

Graph showing fund performance and value.


Who agrees with me?

withnell

But how much longer will they stay flatlined?

tradetime

Initial charge: 5.75%
Annual Management: 1.75%
Why would you want to pay those charges, what are you trying to achieve?

cloud_dog

tradetime wrote: »

Initial charge: 5.75%
Annual Management: 1.75%
Why would you want to pay those charges, what are you trying to achieve?

TT, as I'm sure you are aware buying OIEC's/UT's in a decent fund supermarket will reduce those charges, for example H-L reduces/rebates the Initial to 1% and the AMC to 1.65%, so your other considerations come in to consideration, e.g ease of use, wrapper charges, amounts being invested, etc, etc.

I have some in Junior Oils in a H-L Sipp which means other than the Junior charges I pay no Sipp AMC charge, hence why the Sipp investments are in funds atm.

wombat42_2

You need to decide whether to just invest in the oil commodity or oils shares which maybe more volatile.

Incidentally I have noticed hat my favourite fund Marlborough ETF commodity no longer charges 1% initally through H&L.
http://www.h-l.co.uk/funds/security_details/sedol/B195JD8

tradetime

Personally I think oil represents a good opportunity for the long term, both in the commodity and in the stocks associated with them. Currently I have a position in Crude via USL and a position in the Oil Services sector via PXJ

cloud_dog

wombat42 wrote: »

You need to decide whether to just invest in the oil commodity or oils shares which maybe more volatile.

Incidentally I have noticed hat my favourite fund Marlborough ETF commodity no longer charges 1% initally through H&L.
http://www.h-l.co.uk/funds/security_details/sedol/B195JD8

Wombie, I started making investments in to Marlborough Commodities ETF late last year and by way of some reasearch I started keeping tabs on its top ten investments.

Over the last four months the manager has significantly reduced his exposure to oil (Powershares DB Oil Fund) and has significantly increased the funds exposure to gold, silver and precious mentals using:

• Lyxor Gold Bullion Securities Secured Undated Zero Cpn Notes (USD)
• iShares Silver Trust
• Market Vectors ETF Trust Market Vectors Gold Miners
• PowerShares DB Precious Metals Fund
• iShares COMEX Gold Trust

The above combined investments total over 23% of the fund (with 48% still in cash), ayway food for thought.

cloud_dog