Navra fund

[scott]

As a property I am reasonably confident that I know the rewards and the risks and have made my choices accordingly.

However with shares I have much to learn.

Specifically the Navra fund I believe I know the rewards but am not sure of the possible risks.

Can anyone comment? PM me if if necessary.


Scott

 

[Simon]

I guess the major risk is the chance of your investment going backwards or achieving less than a market return.

How to reduce this risk? I think by doing research on the track record and investment philosophy is a start. Asking others as you are is also a good idea.

Of note is the fact my margin lender has suspended lending against one of the Navra funds. Not for any bad reason but because they have too high an exposure to it - seems it is proving popular.

I am not trying to sell you on Navra but I am an investor in his fund.

Cheers,

 

[thefirstbruce]

I think you need to keep in touch with how much cash the fund has at anyone time. If for instance, it has 20% cash when the market is at an all time high, then the market goes through a 2-3 year bear patch, you work it out how long it takes to get your equity back to neutral.

 

[geoffw]

Any fund has risks. It's possible to lose everything, in any investment.

Ultimately, you have to make your own call. You must have faith in the integrity of the fund manager.

I had complete faith in my first financial advisor. I nearly lost everything I had.

And then I had faith in Peter Spann's ideas. I prospered.

I have faith in Steve's funds. Enough to put a substantial amount. But not enough to put everything. Not because of Steve, or anything in the fund's performance- but just becasue I have been so badly bitten in the past.

 

[Simon]

I think you need to keep in touch with how much cash the fund has at anyone time. If for instance, it has 20% cash when the market is at an all time high, then the market goes through a 2-3 year bear patch, you work it out how long it takes to get your equity back to neutral.

Sorry TFB I don't really understand your post. Can you elaborate please.

Thanks

 

[thefirstbruce]

Simon, I suppose I should have added something about how dollar cost trading doesn't use stop losses. Rather, from the information Steve Navra provides, any cash reserves are used to buy as prices plummet. But considering he can't predict where a bottom occurs, the risk to equity is extreme during a bear run.

That's why I would prefer to invest privately, with the use of stop losses.

If you are more informed on the Navra strategy, please correct me regarding the Navra fund's lack of use of stop losses.

 

[thefirstbruce]

P.S. Simon, what's your opinion about Bluestone, Liberty, and Sapphire lo doc loan rates, and have you something better to offer?

 

[Simon]

I take what you said on board thanks.

I usually use another company which has a lower rate - 7.15% currently and a NODOC to 70% and LODOC to 80%.

Drop me an email if you need more info.

Cheers

 

[thefirstbruce]

I take what you said on board thanks.

I usually use another company which has a lower rate - 7.15% currently and a NODOC to 70% and LODOC to 80%.

Drop me an email if you need more info.

Cheers

How;s your lo doc compare with Bluestone at
http://www.infochoice.com.au/banking/nonconforming/compare/factsheets/product61.asp
6.29%pa
95% LVR without MI

 

[Simon]

Well it doesn't - but that is a FULLDOC loan you linked - is apples and oranges.

Rate is attractive but fees seem high.

I take a holistic approach so I really need to know the client before I make recommendations.

 

[thefirstbruce]

Simon, I see your point, but why would infochoice allow it to be listed under lo docs, or at least non conforming...?????

 

[thefirstbruce]

Any fund has risks. It's possible to lose everything, in any investment.

Geoff, that you can lose everything in any investment needs to be qualified by risk analysis.

 

[scott]

Thanks for your comments

Scott