Irish life property investment

[lionstour]

Someone I know invested a lump sum with this fund in 2005-6. They have lost over 50000 so far and I am advising them to cash this in and invest the remaining cash somewhere else.

My questions are

1. Is there a penalty for cashing in?
2. Where would someone recommend investing the remaining money (74000) long term and with a safe and simple investment approach.

 

[tenchi-fan]

Hi
The penalties vary depending on the product but typically early encashment penalty is 5% for the first 3 years, 3% in year 4 and 1% in year 5.
Also there is a 6 month moratorium on their property funds so your encashment request will not be processed until the end of the 6 months, using the fund value and early encashment penalty at the end of the 6months