Best Option for Regular Monthly Contribution Saving/Investment Policy

[lettermac]

Hello,

My wife and I have circa €300 per month that we would like to direct into a savings/investment policy. We don't have a lump sum (as we spent our SSIA's) but can afford the monthly payments.

Do most of these funds require a once off capital contribution and then you can continue to top this up with monthly contributions or can we start from scratch?

We have a long term view for this money and favour riskier type options. I'm aware that these type of funds may not be capital secure and we are fine with that.

Many thanks,

 

[messyleo]

Any of the regular savings account just require exactly that; a monthly payment and no initial lump sum. AIB/Halifax and Anglo all offer in or around 7% with different conditions attached, choose whichever is most appropriate to your circumtsnaces.

However as you mentioned risk, Quinn Life offers a monthly minimum contribution of €51, and again no initial lump sum is required. There is also a good deal on Eagle Star funds at the moment available through discount brokers (with an option to start off with or without a lump sum). Try some of the previous threads on these funds and others for more info.

 

[asdfg]

Do most of these funds require a once off capital contribution and then you can continue to top this up with monthly contributions or can we start from scratch?

Some require a min investment but most accept payments whatever way you want to invest. There are a number of costs deductions (I sure there are more)
Bid / Offer spread
Annual contribution (% of fund the end of each year)
Monthly contributions



As you have a long term strategy for the money, you should consider putting the money into a pension fund. You will be able to get full tax relief so therefore contribute to the pension up to approx 500 pm assuming it is all allowable at 41%.

Downside is that you can't get access until you retire.

 

[F. Kruger]

Your best bet here is Quinn Life. They do not require a single contribution to start the plan. They have 12 passive funds avaialable with charges varying from 1% to 1.5%.

On charges alone, the Eagle Star product is probably the nearest, in competitive terms. They require a €7,500 single contribution to start the plan but they have 24 funds available at 1%, including 4 passive funds. They have reducing scale early exit penalties in the first 5 years of the plan. These are not on the Quinn Product.