evergreen fund

dandy

Registered User
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I invested €25k in BOI Evergreen fund from my SSIA and €130 monthly however the fund was down about 8% before xmas and another 3.9% already this year should I stop the monthly payment as it seems to be throwing good money after bad ?
 
Have you for previous threads on this issue?

The usual questions - why did you invest in this fund, were you not aware of the possibility of volatility over your investment timeframe, what is your investment timeframe, what is your general attitude to risk/volatility, what other debts/savings/investments do you have, what charges apply on this fund etc. etc.
 
Seems a bit drastic to be pulling out of such an investment after (presumably) a few months?
 
That should depend on your investment timeframe and goals; are you prepared to ride out the storm and wait for the fund to gain back lost ground? Do you need the money soon? Remember that this particular fund was achieving a 9% annual growth rate going back the last few years, so chances are the current downward trend cannot continue indefinitely.

By the way I had €12000 in this fund for 2 years and when it started on the downward spiral last November, I took it all out. I had lost €1000 in 6 months but still came out with a €800 profit. I, however, needed the money in a hurry. If you do not perhaps you should leave it there.
 
I may leave the balance in the fund but stop the monthly payments as I think they would achieve more going into my regular savings account
 
This means that you have bought units high but now that they are low(er) you are going to stop? Surely that's a good way to lose money over the long term? Of course if this is a bad investment/fund or not appropriate to your needs then maybe you should not be in it at all but if it was/is appropriate for you then regardless of short term volatility there may be a strong argument for sticking with it.
 
Thanks Clubman,


You have made some valid points, I need to get soem more information on the fund before I stop monthly payment / withdraw all from fund.
 
Guys, I'm a similar position to dandy and I understand where your coming from I too am a new investor.

My question is to the two experienced (guess) chaps ClubMan and Gebbel and it's this how bad do you think the current situation will get? I invested around Aug'07 and now I see on 17/01/08 its down 12.1%.....so any insights on how bad this current trend can get? Do you foresee any turn around soon?

My Bank of Ireland advisor suggested to hold with the evergreen fund as the shares are basically sound and things should get better after March when all the sub-prime impacts will be known. His reckoning is that consumer have no confidence in the market right now and it will improved in April ( probably April 1st :-( ).I'm worried for sure especially since the US is in the early stages of recession? So should I realise my loss or hold tough. NOTE: I don't need the money anytime soon so could wait however its difficult to see your investements slipping every day.

Hymm what to do?
 
My question is to the two experienced (guess) chaps ClubMan and Gebbel and it's this how bad do you think the current situation will get? I invested around Aug'07 and now I see on 17/01/08 its down 12.1%.....so any insights on how bad this current trend can get? Do you foresee any turn around soon?
Nobody can predict the future. What's more relevant here is the timeframe over which people were/are planning to invest. This sort of volatility is to be expected with equity investments. Over the long term it should smooth out. These are general comments about equity investments and not about this specific product in particular.
My Bank of Ireland advisor suggested to hold with the evergreen fund
Well he would wouldn't he? Don't expect independent, professional investment advice in your best interests from a tied agent.
Hymm what to do?
Well don't try to time the market or listen to your bank manager's biased ramblings about predicting the future for a start...
 
Nobody can predict the future. What's more relevant here is the timeframe over which people were/are planning to invest. This sort of volatility is to be expected with equity investments. Over the long term it should smooth out. These are general comments about equity investments and not about this specific product in particular.

Well he would wouldn't he? Don't expect independent, professional investment advice in your best interests from a tied agent.

Well don't try to time the market or listen to your bank manager's biased ramblings about predicting the future for a start...

ClubMan, yep I hear what you are saying. I understand there is no history to the stockmarket and I'm probably asking a ridiculous question here but would you have any guth feeling for whats happenning with equites and do you see any stablizing soon? Its not just the evergreen all equity based funds are down by about the same amount too?
 

Yep, thats what it feels like alright i.e no stability anytime soon! O.K Ooh boy, I think I'll need to consider realizing a portion of my loss....at this rate the funds could go down another 12% BUT who knows. Guess this is the gamble we take!

Alright thanks for listening to my ramblings. Much appreciated.
 
Yep, thats what it feels like alright i.e no stability anytime soon!
That's not what I said. I just said that I could not answer the questions that you were asking! I cannot predict the future. Nobody can. Gut feelings are worthless.
 
Sorry about that ClubMan. I totally agree.

Switching to the other thread...."When will the downward spiral in the stockmarket end? "....need to digest the information under that thread.

Cheers,
MyDosh.
 
I haven't bothered reading that thread myself as it sounds like a recipe for everybody to post their own half baked notions about predicting the future...
 
I dont understand why you would stop paying your monthly let alone pull your money altogether unless you have a very short time horizon. When prices are depressed your money buys more shares/units, so why did you stop buying when everything went on sale?
 
I haven't bothered reading that thread myself as it sounds like a recipe for everybody to post their own half baked notions about predicting the future...

Agreed. I will however comment a little on the OP's original question in relation to the Evergreen fund:


The Evergreen Fund is unique in that it has a higher property content than any other managed fund currently in the market. The proportion of property assets held in the fund is generally set between 20% and 30% with the remainder of the portfolio made up of equities, fixed interest stocks and cash.

The above quote comes from the smartfunds.ie website. I decided to bail out because of the levelling out, and subsequent decline of the Irish property market during 2007 and now into 2008. As the fund is made up of a high % of property assets, and as my personal investment timeframe was such that I could not "ride out the storm", it made more sense for me to withdraw my money before it declined any further. If others who are in this fund have different goals etc., then the wise advice might be to stay in. It depends on your personal circumstances.

My Bank of Ireland advisor suggested to hold with the evergreen fund as the shares are basically sound and things should get better after March when all the sub-prime impacts will be known.

ClubMan is right in stating that you cannot take the advice of a tied agent in this matter. When I went to Bank of Ireland to withdraw my €12K from this fund, the advisor gave me all kinds of reasons as to why I was making the wrong decision. I am happy now that I ignored him, he is hardly independent!!
Good luck whatever decision you make.
 
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The call we need to make is will fund rebound , or are we throwing money away ....


Only indicator is the assets in fund, if a lot of property , Im out ..
 
The call we need to make is will fund rebound , or are we throwing money away ....

I think a lot of people could do with Googling "pound cost averaging". It might provide some comfort.

On another note, if this investment is causing you this much worry, then it is probably not for you.

Never invest in equities if you're not happy to just tuck the money away for a *minimum* of 5 years and just forget about it. If you're checking the value every 5 minutes, then you'll end up handing all your hard-earned cash over to a psychiatrist at the end of the day.
 
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