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West Brom Axa Distribution fund
Comments
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grizzly1911 wrote: »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?
yes this is the legal term used with this investment, I appreciate that and no the capital isn't guaranteed.
what are the alternatives
1.for guaranteed capital
2.not for guaranteed capital but good growth
and by the way yes that is the fund, what do you think0 -
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?
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.
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.
It is not secure. At times it WILL lose money. it lost around 22% during the credit crunch early days.
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.
again thanks for the feedback, you really know your stuff
I should add as I understood it the fee was almost like a management fee where funds are moving based on performance and it's their charge for almost looking after the funds, their's also no tie-in where you can withdraw the next-day.
if I have not grasped this then pls advise.
can I ask in your personal opinion what would be a better investment to achieve growth, any links etc0 -
yes this is the legal term used with this investment, I appreciate that and no the capital isn't guaranteed.
what are the alternatives
1.for guaranteed capital
2.not for guaranteed capital but good growth
and by the way yes that is the fund, what do you think
There are lots of options for 2 where capital risk can be spread and mitigated (to a degree) with varying growth income rates. We all have differer views on that and what suits one persons circumstances won't necessarily fit another.
As for 1.) even stuffing the money under the mattress has risks, not least lost investment opportunity and erosion by inflation let alone men in stripey jumpers.,
As dunstonh says perhaps you need to step back and consider your objectives and seek further advice from a reputable IFA before jumping into bed with the first plausible offer. Not just for fund performance but for tax efficiency and to look at your whole situation, other savings, pension, property etc.
There doesn't seem to be anything wrong with the fund itself but as a part of bigger portfolio. I wouldn't want to put all my eggs in one basket and certainly not for the amount you are talking about."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I should add as I understood it the fee was almost like a management fee where funds are moving based on performance and it's their charge for almost looking after the funds, their's also no tie-in where you can withdraw the next-day.
if I have not grasped this then pls advise.
I haven't been privy to your discussions and you may well get follow up reviews should you take up the offer.
It sounds to me as though you would pay out £400k, have £382K invested and you would then be at the whim of that particular funds performance. Your substantial bit will just make up a small part of a near £1bn fund.
From what you have said It doesn't sound that they will be monitoring performance against the needs, expectations and hopes of tony_no1."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I should add as I understood it the fee was almost like a management fee where funds are moving based on performance and it's their charge for almost looking after the funds, their's also no tie-in where you can withdraw the next-day.
The 4.5% is an initial fee and taken off immediately you invest in this fund. You've managed to get it down to £11k so if you invest £400k it will become £389k immediately. If you invested via an IFA who charges £1500 your initial investment would be £398.5k.
Then you have the fund's ongoing charges which are taken every year. Have you been told what this charge is?can I ask in your personal opinion what would be a better investment to achieve growth, any links etc
As a regulated adviser dunstonh cannot give that to you as it's against both board rules and his compliance rules.
You really do need to see an IFA - £11k is extortionate as well as being bad advice to stick it all into one fund. Get proper advice which takes into account tax planning as well.0 -
A bit more info.
http://tools.morningstar.co.uk/uk/fundcompare/default.aspx?SecurityTokenList=F0GBR04CF0]2]0]FOGBR$$ALL&CurrencyId=GBP&LanguageId=en-GB"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Ok are their any "recommended" IFA's in Birmingham area0
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Ok are their any "recommended" IFA's in Birmingham area
Look to https://www.unbiased.co.uk for an IFA in your area. Perhaps see more than one to see who you can get on with.0 -
Yeh I did come across that site but how can you er really trust them?
Largest distribution channel. Under 1% of complaints at the FOS (most of which are rejected). Statistically, you would find it hard to find a bad one.Also what are their fees like if I see two would I end up with a 3k bill
First appointment is free but after that you are paying.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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