West Brom Axa Distribution fund

tony_no1

Hi all

I am thinking of investing a large amount of upto 400k into this fund for approx 5+ years.

Can any of you help with your opinions on this fund I have chosen a medium to high risk category after seeing many promising statements of growth

I'm no expert in this field but your views are really appreciated.

dunstonh

I am thinking of investing a large amount of upto 400k into this fund for approx 5+ years.

1 - why chose a building society and not an IFA? (banks and building societies are the worst place to buy)
2 - why do much in just one fund?
3 - what investment platform is being used and what tax wrappers?

tony_no1

1.im a little new to this field I wasn't confident about the advice I received from IFA but the FA from bank is a family friend
2.just want the the funds to maximize growth in one place
3.it's classed as medium to high risk, the fund has been around for 20+ years intended for the cautious investor, for tax x2 ISA's accounts for 11,520 each then main fund in 20% tax payers account

Please advise what you would do

eranou

Are you intending to invest via a West Brom stocks & share ISA?

joerugby

It's a very big amount to put in one place. Personally I'd spread it around a bit - exactly where will depend on your objectives, attitude to risk etc. Also I wouldn't use a tied advisor.

tony_no1

eranou wrote: »

Are you intending to invest via a West Brom stocks & share ISA?

yeah well it comes under the axa distributed fund banner, their charge is 4.5%

please advise what is best

tony_no1

joerugby wrote: »

It's a very big amount to put in one place. Personally I'd spread it around a bit - exactly where will depend on your objectives, attitude to risk etc. Also I wouldn't use a tied advisor.

Thanks for replying

Does anyone know if this fund is reputable my research shows it is, the figures from statements seen showed good growth from 11% per year and I seen approx 25+ accounts

Always have self doubt hence ask the experts

dunstonh

yeah well it comes under the axa distributed fund banner, their charge is 4.5%

Which is why you shouldn't see a bank FA. That is a ridiculous amount for £400k. Along with the very thought of sticking 100% all in one fund. A family friend would not take £18,000 off you for a job that an IFA would do for £1500.

2.just want the the funds to maximize growth in one place

You can do that with a platform. However, a platform allows you to hold multiple investments on a single account.

3.it's classed as medium to high risk, the fund has been around for 20+ years intended for the cautious investor, for tax x2 ISA's accounts for 11,520 each then main fund in 20% tax payers account

If its medium to high risk then it wont be for a cautious investor. our risk scale has it more or less in the middle.

What tax wrapper has the bank recommended? ISA & Unit trust with the plan to do annual bed &ISA or an investment bond?

tony_no1

dunstonh wrote: »

Which is why you shouldn't see a bank FA. That is a ridiculous amount for £400k. Along with the very thought of sticking 100% all in one fund. A family friend would not take £18,000 off you for a job that an IFA would do for £1500.


You can do that with a platform. However, a platform allows you to hold multiple investments on a single account.



If its medium to high risk then it wont be for a cautious investor. our risk scale has it more or less in the middle.

What tax wrapper has the bank recommended? ISA & Unit trust with the plan to do annual bed &ISA or an investment bond?

Not sure when you say recommended? Their making use of ISA's for the total sum of £23,040 the rest will be in partners names as she is a 20% tax payer

Appreciate your feedback, I did think it was high tbh then he made a few calls and it came down to approx 11k

Nothing is set in stone, but Im happy with what I've seen in terms of growth for this fund, have you heard of it? Any bad stories?

Where else could I achieve 11% growth and something that's secure if their such a word

AXA's distributed fund has been branded for the cautious

grizzly1911

tony_no1 wrote: »

Where else could I achieve 11% growth and something that's secure if their such a word

AXA's distributed fund has been branded for the cautious

Is the growth guaranteed? What particular time frame have they used to extrapolate that figure? Past performance is no guarantee of future performance. 11% as an average for a "cautious" fund seems high.

No investment is secure. Is your capital guaranteed? If it is your return and growth prospects are likely to lower. If your capital isn't guaranteed then you are exposed to market risk.- you may get back less than you invest.

EDIT:-

Is it based on this on fund?

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=SNDIIA&univ=O&pagetype=performance

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=SNDIIA&univ=O&pagetype=overview

KIID rates it as 5/7 risk reward. Cautious?

dunstonh

Not sure when you say recommended? Their making use of ISA's for the total sum of £23,040 the rest will be in partners names as she is a 20% tax payer

The investment is just one bit of it. The tax wrappers used is the next. If you are not married then putting the rest in your partners name carries risks. They effectively become the owner of that money.

if you use unwrapped holdings for the bulk of the investment then you are almost certainly going to suffer capital gains tax. An unmarried couple cant use both CGT allowances. If one is a higher rate taxpayer now who will be a basic rate later in life then the investment bond wrapper may be suitable.

What investment platform is being used as this fund is available discounted with certain platforms?

Appreciate your feedback, I did think it was high tbh then he made a few calls and it came down to approx 11k

So, still 5-6 times more than what an IFA would charge. An investment of this size would need annual transactions for CGT calculations and bed & ISA. How much is this FA going to be charging for that? Or will it be another 4.5% on each transaction? The FA may not even be allowed to recommend such things as they wont have the same wide remit an IFA has.

Nothing is set in stone, but Im happy with what I've seen in terms of growth for this fund, have you heard of it? Any bad stories?

I have heard of it. I wouldnt use nowaday. Nothing wrong with it. I just feel that there are better alternatives with funds with similar risk/volatility ratings.

Where else could I achieve 11% growth and something that's secure if their such a word

It is not secure. At times it WILL lose money. it lost around 22% during the credit crunch early days.

AXA's distributed fund has been branded for the cautious

This is why IFAs never use fund houses/providers own risk scales. The context that providers/fund houses use is not the same. It is not cautious. It may be cautious if you are looking at the lowest risk and highest risk unit linked fund the have to offer but in independent scales with cash being the base point, you will not see them referred to as cautious.