Rabodirect - Chinese Equity Fund

S

Saudi

Registered User
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Hi

I've some money in the Robeco Chinese Equity Fund which has done very well over the last 12 months (120% growth).

I'm considering taking my profits now but would like to see other people's opinions on whether they expect this growth to continue.

Also if I only extract my initial investment and leave the "profit" in the fund do I have to pay any cgt on the increase per unit price or would that only become liable once i've actually made a gain? Sorry if this has been discussed at length already it was more of an after thought to my original post.

Thanks

S
 
Well done, nice return for a year. Like anything, hard to say if the market will turn tomorrow, next week or next year.....it is a high risk area so it's more like gambling than investing!

As far as I know, Quinn Direct will take the DIRT at point of encashment. Call them to check (you can't just leave the profit bit in!!).

As it is a high risk area, you should only invest what you can afford to lose, so if you are nervous and need the money, get it sooner rather than later Another stratgy would be to take out the profit and leave in the original investment but you will lose out on the compounding opportunity of investing.
 
Thanks Sam_h. Yeah definitely feels like gambling anyway!

I'm with Rabodirect so think I have to sort out my own taxes.
 
I have also invested in the India fund , which has gone really well. I will give it another while and half the amount in it and leave the rest to chance. Just one question I have, is the growth in these funds driven by others trying to buy the fund or is it genuine growth in value ?
 
Saudi said:
I'm considering taking my profits now but would like to see other people's opinions on whether they expect this growth to continue.
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Take profits and cash in, gambling is about timing and knowing when to pull out. The p/e's in the market place make dot.com frenzy seem reasonable. Shift to commodities to lower your position.
 
How does one buy commodoties ? Can you buy them like shares through a stockbroker ? Are the returns on these guaranteed ?
 
ETF generally - search the threads in AAM for details i.e. Gold, Uranium, Soft commodities Wheat, Pork etc.
 
Try here for commodities - One of many I guess.

[broken link removed]
 
I got out of China early this year, the stock market is in a bubble. Wait for it to burst and get in a cheap prices. I use JP Morgan who have a very long record in this sector from its purchase of Jardines an old British / Hong Kong stockbroker. I think active mgt is better than index tracking in inefficient markets like China.
 
Hi Piglet , have you not lost out , if you got out of China earlier this year and they have performed so strongly this year. How does one manage to invest in the JP Morgan active fund ?
I know one has to make a judgement and stick with it, but I would be gutted it I got out of China/India now and it proceeded to do 60 per cent for the next twelve months.
 
mercedes1 said:
Hi Piglet , have you not lost out , if you got out of China earlier this year and they have performed so strongly this year.
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I'm sure piglet made a gain. You seem to believe that selling at any time other than the top of the market is a lost opportunity. The problem there is that you usually only see the top of the market from the other side, when you're back at the bottom.

Better to take the gain when you see the bubble expanding too rapidly, and catch the next rising tide. Sorry for mixing metaphors :)
 
Sarsfield said:
I'm sure piglet made a gain. You seem to believe that selling at any time other than the top of the market is a lost opportunity. The problem there is that you usually only see the top of the market from the other side, when you're back at the bottom.

Better to take the gain when you see the bubble expanding too rapidly, and catch the next rising tide. Sorry for mixing metaphors :)
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Chinese stock market doubled last year afaik....
 
piglet said:
I got out of China early this year, the stock market is in a bubble. Wait for it to burst and get in a cheap prices. I use JP Morgan who have a very long record in this sector from its purchase of Jardines an old British / Hong Kong stockbroker. I think active mgt is better than index tracking in inefficient markets like China.
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Just wondering how you know the chinese stock market is in a bubble? Surely a bubble is only a bubble once it bursts? Otherwise it is just a rise to a fairer level?
 
Try researching countries economies 2/3 years before hosting olympics, the year during them, and the 2/3 years after them. Interestingly enough, the majority of countries had their best return in the third year after the games. I know that many other factors are at play with regards China at the moment- I have read that their banks are not the most solid in the world, the chinese are a nation of gamblers, etc,etc. but it's still something to consider. Maybe leave some of your investment there for a few more months???
 
forgot to mention....the worst year for 80% of countries economies historically....was the year that they actually hosted the olympics.
 
LOL. So leave the money there until March or April would be safe enough. Just gone into China myself last month.

What is the best way to monitor the situation, keep an eye on Shanghai's stock exchange and the minute it dips pull out???
 
mercedes1 said:
I have also invested in the India fund , which has gone really well. I will give it another while and half the amount in it and leave the rest to chance. Just one question I have, is the growth in these funds driven by others trying to buy the fund or is it genuine growth in value ?
Click to expand...

A fund has no inherent value - it represents the value of the underlying investments only. As more people invest in the fund, the number of fund units increases, so the unit price and therefore the value is unchanged
 
In answer the original question I am of the opinion that 120% is a great profit to have made on your investment. Have you considered cashing in now and reinvest spreading the risk over a few funds. Your liability to Revenue for interest taken out now is easy to compute and is not payable until 2008 (before Oct31 2008).

domadd
 
Domadd, thanks for the advice on the revenue front.

I've decided to take my profit and have sold my China fund, I'm sure it will go up a good bit more but need the money and no point being too greedy. I'm not reinvesting for the moment. I'm leaving roughly 20% of the profit I've made in my savings account for my tax returns.

Thanks

S
 
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