Are prufunds prudent?

sixpence.

I was wondering if people on here have an opinion on prufunds? I was recommended one by an IFA as they provide a steady source of income. It seems like a lot of faff to me though,
https://www.pruadviser.co.uk/pdf/PFBS10000.pdf 
https://www.pruadviser.co.uk/pdf/GENM92301.pdf

masonic

It's a lot of faff. There are some older versions of the funds (no longer on sale) where the smoothing was useful for those who wished to invest over a shorter timeframe than would normally be recommended. The funds were managed very conservatively, so market value reductions were rare. The newer funds have some smoothing, but in the event of a correction or a crash they generally fall just as far. So you are better off embracing the daily ups and downs and opting for a cheaper option.

You might find this thread of interest: https://forums.moneysavingexpert.com/discussion/6121511/pru-prufund-protected-cautious-account-s5

dunstonh

It is a niche fund aimed at low knowledge cautious investors often sold by low knowledge or lazy advisers.

It certainly has its place for the right person but its oversold to people who could do better and cheaper if both they are their advisers put in a bit more effort.  If that effort fails or the consumer doesn't really get it then it could fit.    

Back in the day when you could pick up the same fund for 0.5% p.a. it was a good option. Now its not the same value for money.

Malthusian

As Dunstonh says, it's aimed at low knowledge investors. People who want to pay a lot of money for someone to put their hand over their eyes so they don't have to look at daily market ups and downs.

Almost anyone who would post a reply to this thread is either high knowledge or medium knowledge and improving. You would not hang around a Savings & Investment forum if you were happy to use PruFund. Any more than I would open up a car maintenance forum every day given that I just take my car to the garage twice a year and let them sort it out.