Drip Dividends+rabo+other questions

C

colly1

Guest
Hi Lads,

I'm looking to invest about €3000 in a solid blue chip...I'm hoping to get one with a drip dividend scheme...have a share in mind,good PE,good yield...I'm just wondering is there much administrative hassle with a drip and does it make sense for an investment of this size,would probably sit on the investment for a number of years,I would be buying online via AIB online!also am investing €400 a month in Rabo's fund of the month,hoping it will give me reasonable diversification without much thought or research I'm just wondering are the returns quoted on the rabo site net of management fees.Finally does my investment strategy sound ok...am fairly risk orientated as i'm quite youngish,no ties etc ie hope to buy some solid blue chips directly and invest a monthly sum in some more riskier funds.Have an avc aswell so thats covered.Any advice insight much appreciated.

Thanks
 
Have a look at the TER of the iShares ETFs
([broken link removed], they seem to be far lower than those offered by Rabos funds. The downside to the ETFs is that you buy them like normal shares so buying €400 a month would cost too much because of commission, but if you saved and bought in €1500-€2000 blocks this wouldn't be a problem.
If you plan to keep the funds/ETFs for many years the seemingly small difference in TER(annual fees) will have a compound effect and will add up to quite alot.

In my opinion DRIP/SCRIP schemes are very valubable for the exact same reason as I just mentioned.. try working out the difference between 9% and 10% return per year over 10 years on an initial investment of €2000, it should be around €453(10 yrs) and €2246 in 20 years.. thats ofcourse on the off chance that you hold them that long and have that exact return!

Edit - Setting up a DRIP is usually a matter of just signing and returning a form thats posted to you with your first dividend.. couldn't be easier

Hope that helped.. even a little
 
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