How soon before I should see an upside

[DSLiverpool]

I have given my DBS Volante fund to my investment house as I believe its the wrong time to buy and I can wait 12 / 24 months when I think used values will be hit much harder than they are now.

I have yet to discuss strategy and payback but can I ask the more experienced investors here when they would consider seeing a positive figure achieved (taking fees and other into account)

[Beardy10]

DSLiverpool said:

I have yet to discuss strategy and payback but can I ask the more experienced investors here when they would consider seeing a positive figure achieved (taking fees and other into account)

Depends what it's invested in! How much risk have you told them you are willing to take ? It's really a how long is a piece of string question.

Broadly I would say anything targetting 1 to 3% returns is low risk, 3 to 7% returns as medium risk and anything above that as high risk. That's before fees....which typically are higher for the more risk (and thus advice) you take.

[DSLiverpool]

I see, to rephrase I'm medium risk and understand the first 6 /12 months is fee payback but after that I'm hoping to make a little. I guess my question in unanswerable ad it's specific to each person.

[Beardy10]

DSLiverpool said:

I see, to rephrase I'm medium risk and understand the first 6 /12 months is fee payback but after that I'm hoping to make a little. I guess my question in unanswerable ad it's specific to each person.

Sounds like they are charging you a big upfront advice fee ? How are you investing ? A lot of funds have a supposed 5% upfront fee but it is easy to get round that if you invest through the right channels.

[DSLiverpool]

Not really Its a couple of % max I was probably a bit naive thinking no returns in year one but after speaking to the guys they are optimistic of significantly beating banks in year one after initial charges and kicking on in year 2. At the end of year 2 hopefully the DBS will be viable.

[Beardy10]

DSLiverpool said:

Not really Its a couple of % max I was probably a bit naive thinking no returns in year one but after speaking to the guys they are optimistic of significantly beating banks in year one after initial charges and kicking on in year 2. At the end of year 2 hopefully the DBS will be viable.

So what investment are they recommending ?

[DSLiverpool]

I'm going over later this week to absorb detail but my IFA uses them and I know enough people that have done "well" / better than the Halifax to be assured. If they say UK retail I will take the money back and run - if Argos are in trouble what chance anyone else !

[Bing o]

No return in the first year? What have you invested in, the FTSE100 only or something?

There's double digit growth out there you if you know where to look...

[DonkeyApple]

DSLiverpool said:

I have given my DBS Volante fund to my investment house as I believe its the wrong time to buy and I can wait 12 / 24 months when I think used values will be hit much harder than they are now.

I have yet to discuss strategy and payback but can I ask the more experienced investors here when they would consider seeing a positive figure achieved (taking fees and other into account)

Horrible question and impossible to answer without knowing the house you are using and the intended strategy.

A very wild average is that investment via a private client operation would normally reap returns over a long term period not a short one. The beneficial upsides tend to come from long term tax management etc and it would be down to luck and luck alone if you achieved a good return in the first couple of years.

If you intend to have the cash back within two years then you really need to consider the fact that you could be paying up to 5% away to buy in to their investments and 5% to sell out, not forgetting annual management fees and a bit of rollover comm. It really does depend on what products they intend to put you in to.

To be brutally honest, if you told a private client asset manager that your investment horizon was 2 years then any honest one should tell you that thier service is not suitable for this. It would be a small number who could deliver a suitable set of products.

Just ask lots of questions, keep your eyes open and aim to annoy them by quizzing every statement they make and when you get home have a long think about whether you liked the answers.

[DSLiverpool]

Your spot on we discussed it today and they want 3 - 5 years citing your rational and challenging market conditions UK and world. I've decided I'm happy with that and it's only a car fund so will wait a while longer for the car and make do with my rather beautiful SL55 for a bit. All input had been appreciated - thanks!

[DonkeyApple]

Not exactly a bad car to while away the time with.

[otherman]

DSLiverpool said:

I see, to rephrase I'm medium risk and understand the first 6 /12 months is fee payback but after that I'm hoping to make a little. I guess my question in unanswerable ad it's specific to each person.

? But you could do something as simple as zopa loans which is low risk and currently returning around 6% after fees.
Most higher returns will be stock market based and right now that makes them all high risk in my book, with so many uncertainties around. Using an active fund manager is no sort of gaurantee, because for every one that outperforms the market there has to be one that underperforms it. So you'd need to have good reason to have faith in your fund manager selection skills to look beyond passively managed funds.

[jonah35]

investing for only 12 to 24 months with upfront fees?

should ask yourself how much downside given the market is down a few percent this week