BOI Smart Funds have falling by 2,000 in 10 ten days!

G

Gederick

Registered User
Messages
4
Hi all,

First of all I know nothing about funds. I invested 20,000 back in 2008, it went down to 13,000 and gradually went back up to 23,000.
Now my policy is at 21,200 gross.

The annoying thing is I was going to encash 20,000 before Christmas and leave the minimum amount in (2,500) to keep the policy opened but I just needed the policy to get to about 24,000.

However in the last 10 days or so it has falling by 2,000. I really don't know what to do. I'm afraid that if I leave it for a few more weeks it will continue to fall.

I don't find BOI very helpful, you are very much left on your own. I don't even know if they offer assistance from fund managers?

My portfolio is diverse, I don't know if I should post the portfolio details here but if it helps I will post it, maybe somebody could advise if I should withdrawal now or wait.

Thanks for reading.
Gederick
 
Are these threads for real or are they someone trolling ? Stocks go up and down what did you expect a constant up ? Now you want some people on askaboutmoney to tell you if prices of stocks are going to go up or down next ?
If prices just went up and never fell at all you would get a much worse return you need risk in the markets to create a return.
 
Fella said:
Are these threads for real or are they someone trolling ? Stocks go up and down what did you expect a constant up ? Now you want some people on askaboutmoney to tell you if prices of stocks are going to go up or down next ?
If prices just went up and never fell at all you would get a much worse return you need risk in the markets to create a return.
Click to expand...

What concerns me is how much it is falling on a daily basis. As I said I know nothing about investment. It was recommended to me that I invest back in 2008.
Isn't this website called ask about money? It's not called 'ask about money and get a sarcastic response'
 
I'm not trying to be smart , there is some great info here , it's a great place to find out about how qto invest , the most tax efficient way and cost efficient but nobody can predict the future, seems to be not a day that goes by in falling markets that someone else asks should I stick or sell .
 
If you "know nothing about funds" I could ask why you invested in funds, but let's ignore that.
It sounds like you are invested in some form of Managed Fund or Equity Fund. Typically such funds fell in value up to March 2009 but then began a fairly steady recovery, with one or two blips on the way.
But Equity markets have had a vey bad start to 2016. In general Equities are down about 10% since the start of the year. So it's not surprising your value has fallen by circa 10%.
Whilst markets have recovered a little over the past two days, there remains considerable uncertainty in markets ( fears about Chinese economy, drop in oil prices etc). I don't think anyone can tell you whether markets will continue to fall or continue to rise. Some "experts" are predicting further falls whilst yet other "experts" are more cautiously positive.
There are a wide range of funds available to invest in, but those that offer a low level of risk also offer very low/nil returns (eg Cash Funds). For investors looking for a more positive return, you have to take some level of investment risk ( which might deliver a positive return or might deliver a negative return).
If I knew for sure where markets were heading over the next 6/12/24 months I would be living in the Bahamas or such like.
I think you need to decide what level of investment risk/volatility you can live with and what level of return you want to target. If you cannot get sufficient information from the BOI website or by talking to one of their investment staff ( ask in your local branch), then I can only suggest getting professional advice ( but it will cost). If you post more details of your fund you may get further advice here.
 
Thanks for the reply. Yes I am embarrassed to admit that I invested while knowing nothing about investments but isn't that why Fund Managers exist?
I think I will talk to BOI for sure but they don't like to commit which is understandable.

Does anyone know if you can change your portfolio or are you committed to it for the lifetime of the policy?
 
Gederick said:
Thanks for the reply. Yes I am embarrassed to admit that I invested while knowing nothing about investments but isn't that why Fund Managers exist?
I think I will talk to BOI for sure but they don't like to commit which is understandable.

Does anyone know if you can change your portfolio or are you committed to it for the lifetime of the policy?
Click to expand...

Amidst all the doom and gloom, it is interesting to note that the Stoxx Europe 600 Index actually rose 3% today, taking its two-day climb to 5%. It added 2.6% this week - its biggest such gain since November - after rising the most in a month yesterday. Go Mario!

There is nothing particularly unusual about this level of daily volatility in the stock market.

The chart below shows the distribution of annual returns of US stocks (S&P500) over the last 89 years. If the annual returns are all over the place, you can imagine the volatility on a day-to-day basis.

[broken link removed]


Rather than worrying about daily (or even annual) movements in stock prices, you should really ask yourself why you invested in this fund in the first place. What was your financial goal? Once you are clear in your own mind what you want to achieve with your investment, then you can start to make an informed decision about where to put your money.

Don't forget that your local bank officials will be incentivised to sell you an investment product. Would you expect a car salesman to honestly advise you whether or not you need a new car?
 
Yo be clear, I would not be going to the BOI branch looking to be sold something. I would not even be seeking advice. Rather I would be seeking clarity as to your current investment mix (equity content, bond content, property content, cash content etc) and seeking info as to what other funds you might switch into.
 
Don't make the classic mistake of panicking, and turning a temporary loss of capital into a permanent one.

Also try and and ignore the frothing media. Markets rose today, but do you see headlines like "Billions wiped onto Global Markets"? Equities are volatile, and your reward for withstanding that volatility is better returns over time.
 
In fairness that fund does not seem so bad considering what happened in 2008 it only lost 35% which was way better than alot of investments then and it recovered all its losses and back to profit, many european stock markets have not even regained their 2008 levels. But maybe this correction is really just an over the top reaction because everyone is determined to avoid 2008 scenario so there was massive selling driven by naked fear. Basically it looks like a low risk fund anyway so even if the selling continues that fund will probably not do so bad.
 
Gederick said:
Thanks for the reply. Yes I am embarrassed to admit that I invested while knowing nothing about investments but isn't that why Fund Managers exist?
I think I will talk to BOI for sure but they don't like to commit which is understandable.

Does anyone know if you can change your portfolio or are you committed to it for the lifetime of the policy?
Click to expand...

id be pretty sure that bank of ireland dont manage the fund , they buy it off one of the big investment banks ( in the majority of cases ) and simply repackage it , the person who signed you up to the fund was a sales person , thats all , doesnt mean there is anything wrong with the fund , i imagine its a pretty run of the mill broad based vanilla fund

if you dont need the money anytime soon , do nothing , the fact that it recovered its losses after the crash of 2008 - 2009 suggests its a pretty solid investment product , how much are the fees by the way
 
OP, I think you need to do some research in to whatever you're investing in. As a guide in the long run, equities are the best way to get a solid return on money. After your research is done, find an independent person who will offer you unbiased opinion. This is a case of it's good to talk. As per the last post, the Fund Managers are the winners in all Funds. Have a look at ETFs (exchange traded funds) In cases the charges are far less. Check the TER (total expense ratio on the funds you are invested in). Any further questions revert back here.
 
I remember the PIPS and PEPS from AIB in the 90s..truly terrible products that were really pushed by staff, the setup and ongoing charges were enormous, I would like to know if anyone has one now?,i cashed in the PEP i had after 4 or 5 years, at the time the markets were doing ok but the PEP was dropping like a stone every month!
 
Thank you all so much for replying.

Having read your replies, it is interesting what people were saying about Equities.

About 60% of my portfolio is invested in Equities.

Just to add, the rest of the portfolio is:
25% Property
7% Alternative Investments
5% Bonds
3% Cash
 
Hi Gederick

While your fund certainly appears on the face of it to be well diversified across different asset classes, I would suggest that it is actually a very aggressive allocation - it only has 8% in defensive assets (cash and bonds).

Alternatives cover a multitude of different asset classes/investment styles, from commodities to hedge funds, which may or may not help to temper the fund's volatility over your investment horizon.

I don't have a sufficient window into your personal finances to offer any meaningful comment as to whether or not this fund is appropriate for you, having regard for your personal financial goals.
 
It sounds as if you are in the Evergreen fund.

As plenty have said already, markets go up and they go down again. You went through one really bad period already without freaking out, why the change now? Because you were going to take money out and didn't? Markets weren't doing great at Christmas either but it wasn't as widely reported.

The question you should be asking yourself is, do I need the money now? If you don't, just leave it be and let it go up and down in value. If you look at the value every day/ week/ month, you'll drive yourself mad. If you do need the money, cash out. Don't look at how the fund does afterwards and have regret.

Steven
www.bluewaterfp.ie
 
You must log in or register to reply here.
Back
Top