Euro Freeway or not

H

Happy Girl

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Hi folks. A little direction would be appreciated. Have about 30k to put away long term (20+yrs). Any suggestions. Have looked at best buys but just want opinions. Looked at quinn freeways but Euro Freeway I was interested in appeared to average just over 3% pa for first 5 years (yes I know - past performance does not reflect future performance necessarily - but let's face it we all look at past performance to make our decision). A regular deposit account would have given more over that term. Surely I have this right!
 
It looks like you're right. A lump sum invested exactly 5 years ago would still not be displaying fantastic returns when compared to deposits. I guess that's the impact of timing, the Eurostoxx 50 fell until around the middle of 2003 so 5 year returns don't look great. Although time rather than timing is rightly stressed as the important factor in these investments, clearly timing has quite an effect whether we like it or not. I guess the only way of dealing with this is cost averaging by drip feeding a lump sum into the market. In this case, you would be looking at better returns now on such an investment. However recent posts discussing cost averaging here would indicate that it's no magic bullet and will cut your returns in a rising market.

Considering you're looking at a 20+ years term, one would expect the effect of time to still give a substantially better return than deposits regardless of timing, but of course there are no guarantees with this type of investment.
 
What is the diference between the 2 figures?

one is 14.60% growth over 5 years... approx 3% for each of the last 5 years

the other is 01 Jan 1996 to 28th February 2007 - 236.10%


Therefore
Average annualised performance01 Jan 1996 to 28th February 2007 - 11.5%

Does this prove that over the long term, well in this instance anyhow, that the yearly average was better than say the last 5 years?

Just a thought...me is only a novice.
 
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