Hi rayn
I made certain assumptions about the tax treatment of the PEP. Can you check with your product provider that this is how they actually work? Which company is it and what is the status of the product.
For example, on a new fund, you invest €12,000 - the profit if €5,000, they tax this at 41%.
With an old fund, you gave them €12,000 and they might have deducted the €540 initial charge, and then invested the net result. The impact of this is that when calculating the profit for tax purposes, the cost is €11,460 and not €12,000.
If this was the way it was done, the advantage remains, but it's around €116 less, which brings the return very close together.
Of course, if you can get the initial fee of 4.5% waived or reduced, then the PEP would be superior.
Brendan