managed funds? Invest?
- Thread starter Wirra436
- Start date
There is a lot of stigma towards managed funds since the GFC, with the capital being shredded, the paying ongoing costs to lose money etc.
Index Funds and Listed Investment Companies are making a comeback, which is common in down times.
Index Funds and Listed Investment Companies are making a comeback, which is common in down times.
There's a library of books written on this subject, both good and bad
There's also literally thousands of managed funds available on the market today. You can invest in share funds, property funds and bond funds. You can invest in local, or global funds, ‘balanced’ or ‘growth’ and there are a myriad of fee structures within. There have also been some great fund managers who's names have been synonymous with their funds.
If you are just after exposure to the ASX then there's STW (the ASX top 200) or VAS (the ASX top 300) as index funds?
Sim has a site www.comparefunds.com.au which is worth a look
Bear in mind risk v reward though, Sim's site shows the top fund listed being up 93% over the last six months whereas STW is only up around 5% over six months.
Gday Y-man
Im currently with cbus super, 80% Growth 20% moderate.
atm around $62,000 in the account.
My New company contributes 14% per year which works out to $26,000.
I have never salary sacrificed into super.
ALways wanted to use my income and put it into other funds/property.
Have 1 investment property, currently building equity in it, to buy a second property.
with my other monthly income funds im looking to diversify.
what do we think of managed funds?
other options to invest monthly income into?
cheers
Hi,
My experience with managed fund has been negative so far with the fund that i am currently in, after 5 years , it is still at a loss ( Management fee at .95%).
I just finished reading the book from Ashley Ormond ( 1 Million for Life) for the 2nd time and it thought about the strategies recommended to achieve the $1 million in assets:
- own your home outright,
- investing in properties
- EFTs/Index Funds/LICs, and if you are experience then direct share
- Superannuation
So in the future, for me, i am thinking about invest some funds in EFTs, some in index fund, some in LICs
What I was alluding to is that the bulk of you super money is in Managed Funds - how did they perform (what was the real growth from last year if you remove any additonal contributions?)
The Y-man
Have 1 investment property, currently building equity in it, to buy a second property.
with my other monthly income funds im looking to diversify.
what do we think of managed funds?
other options to invest monthly income into?
cheers
I found this sometime ago will help you out selecting a managed fund
I think Y-Man was insinuating that the performance of your super fund over the past few years will be similar to the performance of any managed fund you would have chosen. eg - poor
Rooster
I prefer to buy shares directly. I figure I can stuff them up without having to pay someone else to stuff them up for me.
In other words, if you find a fund that you like, then you can buy the same shares they own and save yourself a bucketload of fees. I believe that we still have to have a basic knowledge of shares in order to know when to change the Super and fund allocations. There is no point buying into a fund and expecting the managers to take as much care of your funds as you would yourself.
In other words, if you find a fund that you like, then you can buy the same shares they own and save yourself a bucketload of fees. I believe that we still have to have a basic knowledge of shares in order to know when to change the Super and fund allocations. There is no point buying into a fund and expecting the managers to take as much care of your funds as you would yourself.
You can buy the same shares as funds, but you do also have to take into consideration the price paid. You may buy an excellent performing company, but if you pay 20% above their value you'll be in for a bit of pain.
In saying that, managed funds don't necessarily do that much better. I've traded small caps and have seen major investment funds buy into the caps after they've quadrupled in price, then have the price fall 20% and sell out.
Shares are one party which it is not fashioned to arrive late.
What made you think of Managed Funds as an alternative to your Property Investing?
A 100% Offset A/C
What made you think of Managed Funds as an alternative to your Property Investing?
A 100% Offset A/C
hey redwing,
I guess with my high monthly income I thought I would look into managed funds/EFT/ or Index funds. Some of Vanguard's products caught my eye?
I do have an offset account which most of my monthly salary gets put into.
Buying more investment property is definitley on the cards.
No expert here, hence why the topic was put out there
Just visualize what you want,a single stand alone trader will always out trade any managed fund,why because their is a very big difference between the expectations they"MF" produce and the costomers psychographic reality and each demographic model that's out there has also perceptions that are identifiable in advance and each will buy for several different specific psychographic reasons..Have 1 investment property, currently building equity in it, to buy a second property.
with my other monthly income funds im looking to diversify.
what do we think of managed funds?
other options to invest monthly income into?
cheers
That's why if you were to walk down any street in Australia post GFC with your eyes wide open you would see soo many Ladies-Men working in their mid 60's,and if you asked why most would say we lost everything in that period because they trusted someone else to managed their money,it always comes back too one simple item"CONTROL"..
Hi Wirra
I guess the next thing to look at is what time-frames your looking to invest over and your risk/comfort levels? What goes up can come down
Managed (Active) Funds can and do outperform, however over extended time-frames Index (Passive) Funds appear to reel them back in, due in no large part to fee's it would seem.
Warren Buffet has previously recommended index funds as well as Nobel Prize winners and a host of other financial commentators. I was recently reading about Ted Aronson who with his AJO Partners manages about $25 billion of assets. Aronson however, puts his own money into a well diversified portfolio of no-load index funds.
Index Funds & Exchange Traded Funds invested for the long term, it would seem, are well worth a look
There are however Managed Funds such as Listed Investment Companies (LICs) that have been discussed on Somersoft before (Keithj has a great thread) like Argo Investments, Australian Foundation Investment Company, Milton Corporation, there's also WAM Capital, Clime Capital, Platinum Capital Limited and a host of others, these are well worth a look also.
These are all pretty much hands off investing though, unless you're dollar cost averaging, re-balancing periodically, etc
If you're more a DIY type of person and enjoy watching the market and researching, then there's always direct share investing?
We took our super out of managed around 6 months ago and invested directly via SMSF ... managed fund made loss after loss for years and years, or such pitiful returns you couldn't see them ... self managed has made over 10% growth in 4 months with solid blue chip shares (potentially equating to 30%pa).
We consider the super fund our share market diversification.
The moral of the story? Go direct. No one has such an invested interest in your money than you.
We consider the super fund our share market diversification.
The moral of the story? Go direct. No one has such an invested interest in your money than you.
There is still a high correlation between index funds and actively managed funds (in general), its just that index funds out perform over the long term because of lower transactional fees (less churn) and lower fee structure.
but if the market is doing nothing it wont make a huge difference whether its index or actively managed (again on a general premise, there of course will be individual active fund managers whos performance digress significantly from the mean)
