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PIPs and their costs
alfonso
Posts: 38 Forumite
Are PIPs still a good investment ?
I thought so and have been given a projection (cautious growth fund) by my mortgage company FA as I have 40K to invest for 5 yr.
Their initial 2% charge and their yearly management fee of 1.35% look rather excessive ? or would that be the going rate now ?
Regards
Alfie
I thought so and have been given a projection (cautious growth fund) by my mortgage company FA as I have 40K to invest for 5 yr.
Their initial 2% charge and their yearly management fee of 1.35% look rather excessive ? or would that be the going rate now ?
Regards
Alfie
0
Comments
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the term PIPs can mean different things... google "PIPs investment"Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0
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As payless says, "PIP" can mean a few different things. But in general products sold by tied bank advisers aren't the best on the market.0
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As others have said, PIP doesnt tell anything as its used for different things and often incorrect things. PIP is a internal marketing name for some Halifax products for example.I thought so and have been given a projection (cautious growth fund) by my mortgage company FA as I have 40K to invest for 5 yr.
That would suggest you are using a bank sales rep for advice. You should never use a sales rep for advice as they can only offer their own or a limited range of products. Bank products tend to be quite poor as well.Their initial 2% charge and their yearly management fee of 1.35% look rather excessive ?
They are not excessive at all. However, its been noticeable that the total expense ratio on some of the bank's funds is far higher. For example, HSBC World portfolios have a lower annual charge but the total expense ratios are almost double. At the other end, you have Halifax funds which tend to be quite cheap but then they are quite dire. So, you are getting what you are [not] paying for.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Cheers guys you given me something to think about.
Only recently became unemployed/redundant so all this financial stuff is new to me. I guess the banks/BS's make their money by using their FA's on people like me with no experience.
Time for a little swotting me thinks
Regards0 -
I guess the banks/BS's make their money by using their FA's on people like me with no experience.
Yes. They generally have low skilled sales staff selling generally low quality products and investments to low knowledge consumers who woudlnt realise that.
If you need advice, dont use an FA. Use an IFA.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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