Buying funds online

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Hi, anyone here buy funds online? Can you recommend a good company/site?

 

thanks ;)

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1W 1M 3M YTD 1Y 3Y 5Y

1) BB-GO EAST-INVES -0.23 4.13 12.87 20.13 48.27 31.22 15.70

2) DWS-EMERG MARKET 1.04 4.05 16.46 23.67 47.06 18.39 0.70

3) OPPEN-OP EAST EU 0.47 8.53 19.53 28.88 46.62 N.A. N.A.

4) INVESCO-EUR S/C 0.78 4.59 13.30 27.51 46.16 11.05 -31.62

5) MK-PANAMERIKA 0.00 3.01 21.61 25.81 41.17 19.35 -1.60

6) DIT-ENERGIEFONDS -0.63 2.79 17.85 33.40 39.84 17.25 5.05

7) UBS-D-SMALL CAP 1.69 5.27 12.33 28.36 39.54 24.43 -1.65

8) MAT-ASIA PACIFIC 2.71 2.42 16.64 22.98 39.53 20.09 2.94

9) INDEXCHG-6CONSTR 2.83 4.11 16.70 21.96 39.52 16.91 N.A.

10) ADIG-ADISELEKT 1.89 6.57 14.88 26.76 38.79 22.14 -11.14

11) UNIV-BG HS OLYM 4.16 7.57 12.19 17.94 37.81 12.83 -7.87

12) INKA-WW WAC INKA 0.55 6.08 11.88 19.60 37.13 14.77 -19.00

13) BWK-AKT ST S/M 0.30 3.61 13.61 28.06 36.26 19.12 N.A.

14) DWS-ITALIEN 0.85 3.61 11.40 18.16 36.23 16.81 0.55

15) DWS-ENERGIEFONDS -0.80 1.73 18.23 31.07 34.94 13.66 2.02

 

The top 15 funds based on 1YR return as of today. Clearly from the names they are not all for the risk averse. The DWS funds will be available directly from them. Would advise steer clear of DEKA funds currently. IMHO they are not performing Vs their peers.

I don't buy funds myself anymore, but past purchases I made via "The ISA Shop" a UK discount fund broker. This avoided the ridiculous initial charges and cut the management charges drastically for funds purchased. Search them on google. Maybe they still exist.

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thanks! I should have said - where can/should I buy from? Can you recommend a good fund supermarket etc?

 

I'm looking at index trackers to begin with - so I need somewhere to buy those...

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just wondering if folks have some current, upto date tips for index tracker buying in Germany?

 

I've been using ebase for the last 2 years now, but was wanting to perhaps spread my risk a little and buy from another source for my next tracker.

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Are you in the UK/Germany/somewhere else?

 

Fundsnetwork Germany

 

Fundsnetwork Uk

 

They're both fund supermarkets that obviously offer slightly different products depending which country you're in- but both offer several companies funds

 

If you're looking to buy in the uk 'smile' is quite a good discount broker to go through online- they're run by the Co-operative bank but will get you reduced initial charges and no ongoing commisiion in most cases.

 

On the tracker fund note- they're usually either free to buy into or else a very low initial charge and also low ongoing charges. As for where to buy at the moment... wouldn't like to say, things have been pretty up and down recently though China's making a good recovery and Europe's been 'fairly' steady!

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The secret about making profits with investment funds lies primarily in the asset allocation strategy- especially if you have a long-term profiting interest rather than a short term gambling one. that means you should hold funds covering the major areas: world, europe, asia, emerging markets. If you are missing US in this enumeration it is because most world-investment funds are already heavily invested in the US anyway, no need to increase this share. You can then add additional topics like sustainable development, natural resources, ecology, biotec, real estate according to your own investor-type risk profile.

 

When you have determined how you want to spread your investment in order to have a good diversification of your assets (which should also include according to the very succesful model of fund investments from Yale and Harvard private equity and hedge funds because of their low correlation with the stock markets) you should look for investment funds which have a long time track record of beating the benchmark, usually the correlating index. Among those look for the ones who do also outperform the competition for most of the years they are running. One-year performance does not give you much of a clue since the fund management might just have had a lucky punch.

 

This is at least how a competent and fair financial adviser would structure your investments... feel free to copy that for yourself.

 

Cheerio and enjoy the profits

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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you should look for investment funds which have a long time track record of beating the benchmark, usually the correlating index. Among those look for the ones who do also outperform the competition for most of the years they are running. One-year performance does not give you much of a clue since the fund management might just have had a lucky punch.

Yeah I agree... in the UK (not sure bout anywhere else) you're not allowed to publish any fund performance figures until the fund has been runnning for at least one year anyway... most will give you 1, 3, 5 and year to date performance figures so you can look at the long and short term.

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One more freebee from a professional adviser: I always recommend and invite my clients to use the following public free website in order to double-check and better understand my recommendations if I work out an investment portfolio for them. of course I myself use more sophisticated software, but this one will do for most amateurs: http://fonds.onvista.de/

 

At this site you are allowed to check any investment fund you want without having to sign-up for anything. Just punch in the name or, if you have that, the ISIN number in the field in the top left corner and - voila - you get a lot of information about the investment fund. You'll see a chart where you can check the performance in correlation to the benchmark and you can change that from 1y up to 10y. this helps to see if the investment fund beats the benchmark most of the time (otherwise the fund is not worth your money) and how volatile the fund is in comparison to the benchmark.

 

Some two blocks below the chart is another field where it says in German: "Wie gut ist dieser Fonds im Vergleich zu den Fonds seines Anlageschwerpunktes?" (how well does this fund perform in comparison to his peers?). Click on the 3y-comparison and suddenly in a new window you see all other funds in the same sector with their performance. If yours is not among the top 20-30, check in this new window for 5y and 10y comparison as well. If the investment fund you have been looking for is permanently not among the top performers in this sector, maybe you'd be better invested with one who does?.

 

Enjoy the profits,

 

Cheerio

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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thanks for the info guys. I'm in Germany, and to avoid currency conversion issues want to deal in Euros within Germany.

 

I already have the M&G Euro Tracker exc. UK - so am now looking to get a WW or UK tracker. Just something to plug another 100 per month into, over the next 30 years.

 

As I said, today for the M&G I use eBase for handling that tracker. Now I'd like to use someone else - but don't want to go with folks like Fidelity, as their charges seem quite high. As Johnny's text mentions, the whole point of an index tracker is the very low charges.

 

So, Starshollow - any tips for 'how' to buy index trackers from within Germany?

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basically there are pros and cons for index tracker investment funds (ETF is the correct accronym and you can check out those in a special field at OnVista if you like, but many are not open for monthly saving plans).

Pro: ETFs are mirroring the index, thus you need not fear and control that the investment fund of your choice does outperforme the index. Since these funds simply mirror the index, administration costs are low.

Cons: when the index goes down, the ETFs take the down swing in full force because they can not shift into other investments such as bonds and so on. This makes ETFs a bit more vulnerable than well managed investment funds.

 

Since you already have a EURO tracker, why add an U.K. tracker? I have seen that the M&G Euro tracker is ex-U.K., but wouldn't you rather get some ex-Europe funds into your portfolio instead of yet one more European country index? At least I would split the 100 EUR you want to spend each month into half U.K. and half Global or Asia or Emerging Markets. When you invest with monthly installments you want to check for funds with high volatility in order to generate more cost average effect.

 

If you use another new plattform, I guess you will have to pay additional fees for an account and portfolio managment and so on. Even though there seem to be some plattform with low or zero costs around, but then I would recommend to shift your other investment from Ebase over to them for more transparency to you.

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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"If you use another new plattform"

 

thanks for the info - but this is what I'm really trying to find - who/what are the good platform choices out there? Are Etrade good, Fidelity etc? I'm trying to understand which firm offers the cheapest fees etc?? (from within Germany)

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sorry, can't help you there since I am usually looking for plattforms that offer loads of service to me and my clients to work on the investments continously and that is another ballgame. I here often good comments about "comdirect" and "dab" but there you have to anticpate calls from them with "financial advise" which can be annyoing... Thats why the offer the plattform for free in order to get new clients for a lot of other business (cross-selling) opportunities. Among the major plattforms, Ebase, Augsburger Fondsbank and Frankfurter Fondsbank appear to be very good.

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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who/what are the good platform choices out there? Are Etrade good, Fidelity etc?

I don't know about Etrade but the Fidelity/Fundsnetwork platform offer loyalty fees too so the longer you're investing with them the more the charges go down.

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Ok read all the funds threads here and wondered if any of the people here who contribute on the Finance board had and current views on ways to invest in funds (I don't mean advice / strategy - I work to what Starshollow said, it'd be German / European blue chip stuff to start with).

 

I've decided to dive in again. I had funds for years in the UK and used Fidelity FundsNetwork (sold in 2007 thankfully). However, I am also contemplating my bank (Sparkasse Dekafunds). I'm starting small just to get the habit back so won't take too big a hit on fees. A regular automatic payment gives me the discpline I need right now and may buy goodwill for when I ask for a mortgage later.

 

Any opinions, comments or options apreciated, thanks :) .

 

EDIT - In fact, I'll open it up a bit. My financial strategy needs to focus on capital protection. I have a paid-for home and good pension rights, but also some cash and an "spare" income stream that will add to that further. My risk is that this is going to depreciate if left just as a cash pile. Any ideas? Another property (as I've already mentioned here)? Other?

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what would be your time horizon for such investment, i.e. how long can the money rest in there without being touched in parts or full...?

And: how much interims loss would you accept, i.e., how much volatility can you savely sustain?

Once you have let me know I am happy to come up with some concrete suggestions. Of course it would also help to know how much money you want/plan to invest (lump sum/monthly). of course this is probably something you don't want to disclose openly, so perhaps you'll send me the details directly?

 

Cheerio

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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Thanks starshollow, I might just do that :) . I'm in the probably typical immigrant position of finances being up in the air for some time and plans uncertain (and with need to save / preserve) but I'm now starting to plan a bit longer term with some more certainty. It feels like my brain is re-wiring a bit and I need to get the habits back. I seem to do things very slowly though now - can only do one thing at a time at the pace of a very slow snail.

 

I've just read an article that addressed almost an identical question to mine in today's UK Times - the first suggestion for investment was guns!

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Like Starshollow said, it's about the duration and size of your investment. The safest bet would probably be funds, and there are many good german companies that offer that.

If the sum you are thinking of investing is bigger (over 100k), I would divide it into multiple funds and maybe a managed brokerage account. If you are thinking very long term (over 10 years), your best bet would be a commodity fund, most likely in the energy sector.

Or buy some gold ounces and have the bank store them for you ;)

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since many - if not most - economist say that in the next couple of years a stronger inflationary trend will be seen in most Western economies, investing in funds as KOBE suggested is certainly one good way to make sure your money is less vulnerable to inflation. And in volatile markets as they are right now, monthly investments into funds also generates the so called cost average effect in your favour, something well worth using to your benefits.

This then should be partnered with investments in "tangible" stuff: real estate for instance, companies not listed on the stock markets (Private Equity funds), or even investment in container for ships, airplanes, solar parks, wind mills, forrest etc. Most of these investments require an intitial lump-sum (10-20 k EUR) and can then be beefed up with monthly contributions, too. But some are also availabel with far smaller lump-sums plus monthyl contribtutions.

While usually I recommend also bonds to be part of a well set portfolio, I am a bit sceptical right now with regards to both, governement issued bonds and company issued bonds. Here I would for once rather trust a good fund management to take care of this for me instead of picking some myself.

Since banks are starting to offer derivatives (Zertifikate) again as if nothing happened in recent years I would like to warn about them. They are usually nothing but a bet organized by a bank and not the real thing. Derivatives can be used with a small percentage in a well set portfolio, but one should not use them heavily because they come with all kind of guarantees (which may not be worth much in the end as Lehmann Bros clients found out).

 

Cheerio

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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Thanks both. I've also touted the views of finanically-informed mates (I'm in Finance myself but not this area) and they came up with some a range of interesting suggestions. This kind of "alternative investment" in a business came up several times (timber etc).

 

I already have a property. They are pricy where I live but I could buy in to Berlin etc and either rent or keep the place for me. Some people say that therefore a property fund is a way to invest in this area but without the personal risk and effort and longer-term obligation of wning a whole one yourself.

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