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Do I buy now or later

Discussion in 'Managed Funds & Index Funds' started by dreamland, 15th Sep, 2005.

  1. dreamland

    dreamland Member

    Joined:
    13th Sep, 2005
    Posts:
    5
    HI,

    When is the best time to buy units in the retail fund.
    I bought some at $1.07 a couple of months ago, and I have noticed today
    the unit price is $1.15.
    Do I buy now at the peak or wait until it drops- if it drops!

    Are there any advantages/disadvantages to buying now.

    Any advice would be helpful.

    Thanks
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Advantage: there is a record distribution coming end of this quarter (according to Steve) ... if you need income, now is a good time to invest

    Disadvantage: there is a record distribution coming end of this quarter (according to Steve) ... if you don't need income, now is a not as good a time to invest as the beginning of October might be :D

    However, the market might continue to rise strongly in that time, and you would have missed out on that extra growth. Then again, it might not. :rolleyes:

    Personally, I don't try and time my investments into managed funds - I figure the fund managers themselves do all the timing I need (either through their own stock picking criteria, or through a trading system that takes advantage of changing market conditions such as NavTrade). Since my margin loan LVR has dropped dramatically over the last couple of months, I just invested another chunk of money into the fund completely sourced from my margin loan.

    You might also want to consider how the income distribution will affect your tax position too - might be worth waiting until October ... unit prices will drop as a result of the distribution, so you won't really be any worse off investing immediately after the distribution as opposed to immediately before it.
     
  3. Bob

    Bob Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    131
    Retail fund

    Hey Sim,

    When is the cut off date for new funds for this quarter's distribution?

    Thanks

    Bob
     
  4. See Change

    See Change Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    59

    How do you know now is the peak....

    I'm not saying it isn't , but I know I don't know ...

    See Change
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
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    Location:
    Sydney, Australia
    Not 100% sure, but in theory it would be Sept 30th I think ... however, you would also need to allow time for NI to receive and process the application - so I would allow a few days extra ... you'd need to check with NI themselves to work out how late you could realistically leave it.
     
  6. Bob

    Bob Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    131
    More retail funds

    Thanks Sim,

    I placed some funds inside the retail fund last week, but I am refinancing at the moment for extra equity and I can see it having a good time inside the retail fund. The banks aren't as fast as I would like them to be..maybe next quarter

    thanks

    Bob