Prudential Prufund Growth

Susy909

Does anyone know how to access this for SIPP without an IFA

Any thoughts on the fund?

Susy909

I like it because it does "smoothing", I can't find any funds on HL that do similar.

Drp8713

I have just had a look on trustnet and it seems to just be a bog standard multi asset fund but it charges a massive 1.75%.

Is there anything especially different about it to justify the cost?

It is about 50% equities and has returned 40% over the last 5 years.

I hold RIT Capital Partners, which is also 50% equities and multi asset, and it has returned 70% over the same period.

I know which one I prefer.

dunstonh

but it charges a massive 1.75%.

Is there anything especially different about it to justify the cost?

Cost depends on how you buy it. However, do remember it is capital security and any investment with capital security costs more as the guarantees have to be paid for. Many investors will consider the cost of the guarantee too high and not required. However, for inexperienced investor with little or no investment knowledge and understanding, they may prefer the comfort of that security.

Susy909

What do you mean capital security?

I'm finding the prudential website confusing, is this the only way to purchase it?

mark5

Susy909 wrote: »

What do you mean capital security?

I'm finding the prudential website confusing, is this the only way to purchase it?

There's a guaranteed return of an agreed amount after a set time period.

whatsup7

Did you ever get an answer to your question

atilla

Susy909 wrote: »

What do you mean capital security?

I'm finding the prudential website confusing, is this the only way to purchase it?

As far as i know, it is only available via an IFA/FA

Marnico

This is one of the options being proposed to me for a DB transfer, with the main rationale being the smoothing effect to reduce the risk of loses. the IFA (who used to work for Pru and seems to mainly deal in their products) mentioned typical returns of 5-7% from the fund..... which seems a bit too good to be true ? Fees 1 - 1.4% + his fee of 0.5% AMC

nrsql

>> the IFA (who used to work for Pru and seems to mainly deal in their products)

If that is true I would be asking if they are the most appropriate products and what he has compared them against.

dunstonh

mentioned typical returns of 5-7% from the fund..... which seems a bit too good to be true ?

5% would be reasonable long term expectation. I have a number of clients that have held (the older versions) for 20 years and exceeded 5%. However, those versions were 1% including adviser remuneration of 0.5%. I havent recommended a prufund since they moved to their higher pricing. I prefer unit linked as the returns on that tend to be higher on a like for like risk basis. That said, I doubt you would be unhappy with Pru fund.

Plus, do remember that we are now 10 years from credit crunch with very few negative periods. More recent returns have been higher but should not be expected to stay as such.