Tradefair & Financials
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Hi guys, pardon my ignorance here, but im mulling over a similar situation to JackBrazzo in his thread and considering investing in a fund like the templeton emerging markets fund but really do have a few questions I hope you can answer...
Im completely new to these sorts of investments so apologises in advance if it sounds stupid...
Right...
If I put in £50 per month as suggested above, what happens then, do they pay out an annual dividend?
How if needed can I take my money out of the fund, I take it this is possible? After a year or 2 with around £1200 invested, can you just take the money out? and do they charge you to do so?
Is it possible to do small amounts as mentioned above for are their minimum payments / investments?
Really intrigued more so on how I get the benefits, and how I remove the investment if needed?
Apologises again for the rather newbie questions but any help really would be appreciated?/?
thanks in advance
Steve
Im completely new to these sorts of investments so apologises in advance if it sounds stupid...
Right...
If I put in £50 per month as suggested above, what happens then, do they pay out an annual dividend?
How if needed can I take my money out of the fund, I take it this is possible? After a year or 2 with around £1200 invested, can you just take the money out? and do they charge you to do so?
Is it possible to do small amounts as mentioned above for are their minimum payments / investments?
Really intrigued more so on how I get the benefits, and how I remove the investment if needed?
Apologises again for the rather newbie questions but any help really would be appreciated?/?
thanks in advance
Steve
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If I put in £50 per month as suggested above, what happens then, do they pay out an annual dividend?
Unlikely, but check with the documentation. If underlying stocks pay dividends, this is often rolled back into the fund value. You will probably have an increasing number of "shares" or units, the value of which will go up and down like a fiddler's elbow. How if needed can I take my money out of the fund, I take it this is possible? After a year or 2 with around £1200 invested, can you just take the money out? and do they charge you to do so? Again - you need to check as this could be anything from a big penalty, penalty in the first year only etc. Is it possible to do small amounts as mentioned above for are their minimum payments / investments? Smalls are probably allowed - they want to have a wide customer base so monthly pension contributions from many people is a big part of that. Really intrigued more so on how I get the benefits, and how I remove the investment if needed? There's no fixed answers to this - you really need to check all the docs. I would recommend emailing your questions directly to the fund. |
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interesting...many thanks
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Go to their website and they give info for each fund. Templeton have two types of investment one that pays a tiny dividend each year (27 cents)and the other which accumulates the dividend into new "shares". Templeton have not beaten the index since 1991 launch and have heavy percentage charges. 80% of these fund managers do not beat the index so you are better off most of the time with a tracker or ETF fund. These investments are liquid and can be readily cashed in. Unit trusts have a spread you buy at the higher price and sell at the lower and that is it - plus any capital gains tax you may need to pay HMRC.
Get better info from sites such as http://www.h-l.co.uk/ |
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And be aware of what sort of fund you are going into. The Templeton one I mentioned in the other thread was the Investment Trust, not the US mutual fund. So it can be a bit confusing with similar funds only being one character different, but with very different underlying characteristics. Cornubia is correct that most fund managers don't beat the index, but if you can find the ones that will, it can be worth it. But ETFs can be very low cost, and very easy to redeem as well.
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Also, read LOTS before you decide anything. Got to motley fool and read their basic investors guide, go the Hargreaves Lansdown and Bestinvest and check out their recommendations too. There's also a blog called Monevator about personal finance which is excellent, so have a browse through some of his stuff.
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great advice, taken on board, thanks chaps
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