Which Income Fund

[HHH]

Hello everyone

The recent discussions on Peter Spann's new income fund is very timely for us. After much thought, investing in shares directly is something I want to do down the track, but my business takes up 99% of my time at the moment and I feel direct investing in my limited spare time would not be a very efficient way of using my money or my time.

So it looks like an income fund is the way forward at this stage. Like most others, the purpose of investing in an income fund is to help with the holding costs of properties.

I am looking for help in deciding which income fund to invest in. The only ones that I am aware of at the moment are Peter Spann/Macquarie, Navra and I think Vanguard have one.

Can you guys point me in the direction of any others, as well as perhaps some pros/cons of each (including the ones I mentioned above).

As far as I can see, Navra is the only one that pays dividends quarterly which is a big plus from my point of view.

So please guys and gals, looking forward to summarising the recent discussions on income funds with a list of income funds and discussions on each and even mentions of the specific funds used by the members here.

thanks in advance

 

[TryHard]

Income funds

Hi HHH

We've only used the Navra fund and therefore biased as it has performed very well for us. The more I have read lately the more I put some weight on track record.

Maybe take a look at the comparisons on http://www.investsmart.com.au/funds/search.asp ?

One trick with the returns quoted is to check the geared versus ungeared funds - ie. Navra that does say 22% pa return can do 35% + per annum if you're prepared to wear the additional risk of margin lending. So some of the returns shown are not all apples with apples, but you'll get the idea

Cheers
Carl

 

[The Y-man]

Liquidity and volatility are issues to consider.

Unlisted Propert Trusts such as Cromwell will pay (9%pa at present) on a MONTHLY basis, however, their liquidity /exit scheme is a bit more convoluted than for a listed property trust.

Consider also managed funds of property trusts.

Cheers,

The Y-man