Fidelity - Global Property

freescaler

I fancy taking the plunge and putting some money into "bricks and mortar".The fund hasn't been established long enough to check performance.Does this seem like a good opporunity or should I play "safe" and stick to a mini cash ISA

dunstonh

Fidelity Global Property is not a bricks and mortar property fund. Whilst i have used it heavily since launch and its performance in that short time has been excellent, you cannot compare it to a mini cash ISA in any way. On a risk scale of 1 to 10, one being lowest, ten highest, a Cash ISA is at 1. The Fid Global property is at 9.

freescaler

Why is it regarded as being so risky?

dunstonh

Single asset class, overseas with limited spread not invested in bricks and mortar directly but in shares. It compares with the Aberdeen property share fund which is also risk 9. However, a UK bricks and mortar property fund would be around risk 4/5.

cheggers

Have a look at Standard Life new property fund

whiteflag_3

dunstonh wrote:

Single asset class, overseas with limited spread not invested in bricks and mortar directly but in shares. It compares with the Aberdeen property share fund which is also risk 9. However, a UK bricks and mortar property fund would be around risk 4/5.

I dont think Fidelity & Morningstar feel its as risky as this.

dh Where would you rate the Neptune Russia & Gt Russia fund ? On your scale I would have to put it @ 13 (unlucky for some)

RubyBish

whiteflag wrote:

I dont think Fidelity & Morningstar feel its as risky as this.

Ive been looking at this fund myself. Fidelity themselves rate it as 6 out of 7, so pretty high risk.

EdInvestor

freescaler wrote:

I fancy taking the plunge and putting some money into "bricks and mortar".

Hi freescaler

You don't happen to have a private pension do you?

Almost all the pension providers have property funds of the bricks and mortar variety, and most of them perform well.

Pension property funds list

So if you have a pension, switching some of the money out of whatever it's in now* and into the insurer's property fund may be an easy way to get exposure while also obtaining better returns from your pension.

There are supposed to be more unit trust property funds coming out as they will be allowed into ISAs from this year, but we haven't seen much yet. So if you are only interested in the ISA route it may be best just to wait.

*A word of warning just to check for any guarantees if your pension is in a With-profits fund. If you have any, it may be better not to move it.

whiteflag_3

EdInvestor wrote:

Hi freescaler

You don't happen to have a private pension do you?

Almost all the pension providers have property funds of the bricks and mortar variety, and most of them perform well.

Pension property funds list

So if you have a pension, switching some of the money out of whatever it's in now* and into the insurer's property fund may be an easy way to get exposure while also obtaining better returns from your pension.

There are supposed to be more unit trust property funds coming out as they will be allowed into ISAs from this year, but we haven't seen much yet (ED YOU SHOULD LOOK A BIT HARDER). So if you are only interested in the ISA route it may be best just to wait.

QUOTE]

What a bizarre post Since when has a pension been an alternative to a mini cash ISA?

Freescaler- before following Eds suggestion I would recommend you do as she always advises and do your own research.

While I cant give advice on individual funds, I cant undertstand why Ed recommends you wait,
when there are 20 funds available at the moment.

I suggest you go to the Fundsnetwork site, go to the fund finder and put property in the search box - hope this helps

kayleigh

RubyBish wrote:

Ive been looking at this fund myself. Fidelity themselves rate it as 6 out of 7, so pretty high risk.

Over what of time period do they work out the risk. Surely if you invest a large sum for say 1 year - yes you could lose a lot - but if you drip feed monthly into a high risk fund for 7-10 years - the risk must be a lot less - as you will be buying a load when the price drops - as long as you have full control over when you want to get out - you could wait 2-3 years until the price recovers - or am I making it over simple?

savingforoz

I have a question about the expected return - dunstonh says he/she's been impressed so far - Fidelity say they're expecting a return of 7 - 9% - is that them being conservative? Is that a good rate for this type of fund?
I'm considering a small initial investment and then a regular monthly contribution, for my 2006/07 ISA.