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Old 02.11.2010, 09:28
economisto
 
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Re: Investment Fund Savings Plan/Income Plan

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I agree with what you are saying. How to invest needs to be a very well considered decision. However, it seems to me that the OP has a 12 year time frame, so timing the market is not that important, the money is not needed within the time frame, and the low cost would help a lot when compounded over the period.

Yes, this might not fit into OP's personal situation (more info would be needed), but the OP would do well to ask CS about index funds because CS will probably try and sell you all sorts of funds, but not low cost funds.
In fact market timing is still important, though you're right in that it's less important when to buy (just asap). Buying on day one will mean that you'll see between one and two market highs within 12 years. It's important to downgrade risk levels at or near this point to lock in profits. Tracker funds/ETFs are useful tools with expense ratios of 0.3% to 0.7% per year. However if you're paying someone to look after them for you, rather go for a cheapish fund at 1% to 1.5% AMC with 0% to 2% front load. In my opinion it works out as better value. Having said that I would never go near a bank for financial advice (other than maybe HSBC Offshore who are best in class).
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