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Asx 200 fund (stw)

Discussion in 'Introductions' started by JLS, 20th Dec, 2009.

  1. JLS

    JLS New Member

    Joined:
    11th Dec, 2009
    Posts:
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    Location:
    Auckland
    Hi Everyone,
    I'm new to investing as my question will show.
    I'm not looking for capital gain but an investment that provides a moderate income by way of dividends and, at the same time, some protection against inflation.
    How does a fund like SPDR S&P/ASX 200 Fund (STW) stack up in this regard?
    Any comments?
    JLS
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

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    1st Jul, 2009
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    Location:
    SE Queensland
    Hi JLS

    Go to comparefunds.com.au and look up the ASX 200 index.


    Cheers, Johny.
     
  3. JLS

    JLS New Member

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    11th Dec, 2009
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    Location:
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    STW

    Thanks, Johny, I'll look at that site.
    Regads,
    JLS
     
  4. Chris C

    Chris C Well-Known Member

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    I personally think that index funds like STW are a good investment choice if you are looking for both average returns, with pretty good diversification of risk that also has a reasonable degree of protection against inflation given the business' asset values and profits are likely to increase in the presence of higher inflation. Plus it's an easy, low maintenance investment choice.

    The only major caveat would be if you wanted to buy or sell small amounts of stocks regularly in which case the brokerage fees might start to stack up.
     
  5. Insight

    Insight Brisbane Buyers Agent

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    Index funds provide 'above average' performance, just pointing out how performance in the stock market is dished out :)
     
  6. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Location:
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    Index funds provide Market performance (minus fees). That is, at any one time, they are being outperformed by a few active funds while overperforming most active funds. And they are Cheap$!


    Johny.