Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
Recovery Fund problem
+ Reply to discussion
Options
Anonymous Post
Posted: 08 September 2010 13:48:35(UTC)
#1
Anonymous 1 needed this 'Off the Record'

I have invested in a U.K. recovery fund with high a 5 % initial charge and a TER of about 1.5%. Would I have been better off investing in an all share tracker with lower charges as my fund just seems to mirror the corresponding ups and downs of the market .
Back to top Quote
Pete N
Posted: 08 September 2010 15:51:26(UTC)
#2

Joined: 22/07/2010(UTC)
Posts: 4
Why are you paying a 5% initial charge when you could have purchased the fund at around 0% initial charge through a fund supermarket like Hargreaves Lansdown for example?

At times a recovery fund or aggressive growth fund can outperform the FTSE All Share by a considerable margin, other times it can lag the index. It is all pot luck really but a tracker fund has it's place as a core part of a portfolio and then recovery funds and other medium to higher risk funds can add a bit of spice.

Are you making regular monthly investments to average out your fund unit prices?
Back to top Quote
Giraffe
Posted: 08 September 2010 15:51:54(UTC)
#3

Joined: 08/08/2009(UTC)
Posts: 1
Putting aside ongoing costs and performance, you should have bought through a fund supermarket which in all probablility would have enabled you to avoid the hefty initial charge in its entirety.
Back to top Quote
Gergiev
Posted: 08 September 2010 15:54:41(UTC)
#4

Joined: 09/04/2010(UTC)
Posts: 2
Over the long run a fund like, for example, M&G Recovery, will usually out-perform the index but at 5% initial charge and 1.5% TER you are going to struggle. By buying through a fund supermarket like Hargreaves Landsdown or Fidelity you will get up to 100% discount on the initial charge, and possibly some discount on the TER as well to improve your chances. M&G X shares also are free of initial charge and free of "selling" fee if kept for over 5 years. That will be £1000 advice fee please :-)
Back to top Quote
Chairman2
Posted: 08 September 2010 18:58:38(UTC)
#5

Joined: 26/06/2009(UTC)
Posts: 10
In addition to HL and Fidelity BestInvest are pretty good
with rebates of initial charges on major funds

they send out regular fund updates which tell you
when they think you should switch - Its a better
service in my opinion (I am with both BI and HL)

Back to top Quote
+ Reply to discussion

Markets

Other markets