Investing in Indices

shipship

Registered User
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Hi,

I'm thinking of investing in indices, preferably in those outside of Ireland.

I plan on putting in a €100+ per month to begin with, and was wondering about what's the best way of implementing this.

Sorry if this is a silly question, but I looked at rabo and internaxx but neither of them seem to offer those kind of funds. Are they just under a different name?

What kind of transaction fees can I expect? Would I be better off just putting in a lump sum infrequently?

Thanks for any help!
 
Quinn Life offer index trackers for most indices. If you feel comfortable investing with them you should check out their Freeway funds. Manageement fees are from 1 to 1.5% if I recall correctly with no bid/offer spread messing or exit fees.
 
If you invest directly into an ETF (traded like other shares on a stock exchange) then you will be hit with a transaction fee of about 20 euro per trade (in the example of NIB share trading)

At 100 per month you would be better off with a managed fund of some sort from Quinn, Rabo etc.
 
According to the ISE website here, Irish domiciled ETFs are not liable for Stamp Duty. For a small investor like the op, you can expect to pay around €10 commission per trade if you trade online.
 
Indices have gone nowhere in the last 10 yrs or so. I would see no reason to 'invest' in them unless you have a well thought out strategy for doing so with good entry and exit tactics.
 
I have use Quinn Life for a regular monthly contribution, for maybe 6 years now. After 15 years, they offer to reduce the AMC by about .5% IIRC. There is a thread about the possible risk of investing with Quinn Life.

Quinn Life use a life assurance wrapper. If you have a large lump say e.g. 50 or 100k you can via discount brokers, get lower annual management charges.

ETF's have lower annual charges, but charges are just one reduction on your return. Taxes are another. For me the taxes that are due on investing with ETF's are clear at all. I have never got any helpful feedback from the Irish revenue on taxes on ETFs



p.s. I am not interested in the ISEQ ETF, whose tax situation seems to be clearer.
 
Indices have gone nowhere in the last 10 yrs or so. I would see no reason to 'invest' in them unless you have a well thought out strategy for doing so with good entry and exit tactics.

This is such a misleading statement. Entry and exit tactics have nothing to do with expected returns for a long-term investor.

I have addressed the general argument against a buy and hold strategy on this thread
http://www.askaboutmoney.com/showthread.php?p=1046536#post1046536

However, for reference some randomly selected indexes from the perspective of a Euro investor for the ten years ending April 2010

Euro Inflation Linked Bond index 6.32%pa
Bloomberg Euro 10Year plus bond index 6.79%pa
Citigroup World Gvt Bond 1-5 Index hedged to Euro 4.39%pa
MSCI Emerging Markets Index 6.42%pa
S&P Global REIT Index 7.68%pa

and finally for reference 1 month Libor in Eur 3.09%pa

[broken link removed]
 
I wanted to invest this way because I was led to believe the fees were extremely low and most funds don't do much better than the index anyway, I take it now that's it not as simple as that!
 
I was hoping to start investing c. €500 per month - what is the best way of doing this - invest in the trackers or directly in equities? I would be looking to "diversify", buying small amounts in many companies primarily in Ireland/UK and eventually worldwide. Hoping to spread the risk by buying over time.

If I was to split the €500 over say two equities would I pay the charge for each trade (€40 for two trades using NIB example above)?
 
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