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First Investement - Lost in choices, need some help

Discussion in 'Managed Funds & Index Funds' started by Katie, 21st Mar, 2010.

  1. Katie

    Katie New Member

    Joined:
    21st Mar, 2010
    Posts:
    3
    Location:
    Sydney, NSW
    Hi Everyone,

    I am looking into investing into managed fund.
    So far I do not know much about investing, but I am thinking to invest anyway and catch up with the research & understanding later, so this will be my first time. Recently I went to a free Bankwest financial adviser; my profile is ‘High Growth (4/5)
    I am thinking to invest 40 K in two funds (20K in Australian Shares & 20K in other, global shares, not clear yet about second fund) using YourShare - Home Page. This will leave me with additional 40K in the bank for future investments.
    Can you please see if you see anything wrong with my choices & strategy?
    So far I have picked few funds which I thought will preform well in the future:

    Perpetual Wholesale Ethical SRI Fund
    BT Partner Australian Shares Growth 1
    Colonial First State - FirstChoice Australian Share

    Colonial First State Imputation Fund
    Perpetual IC - Industrial Share Asset Group
    Wilson HTM Priority Growth Fund - from top 10 list
    Macquarie Sharemarket Fund - International Share - from top 10 list

    Alternatively, I could invest all my money in couple of share funds, but I am a bit scared

    Many Thanks
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Hi Katie

    'High growth' is usually given to investors who want the highest Risk. Colonial suggests geared managed funds when in this category.

    How old are you?, may I asked. If you are young you can afford to make more mistakes.

    I would research first, and don't catch up later. Otherwise its called luck.

    Have you decided not to go to an advisor?

    Are you going to buy and hold your funds?




    Johny.
     
  3. Katie

    Katie New Member

    Joined:
    21st Mar, 2010
    Posts:
    3
    Location:
    Sydney, NSW
    I am planning to hold my funds. I am 26. I guess the reason I've scored High Growth is because I am happy to put some of my money away for the long period of time & not stress out about interim ups & downs.

    I'd like to go to the financial advisor, but I haven't got anyone who can recommend me a good one. Besides, I do not really want to pay fees on the managed funds investments. I also think the whole idea of managed funds is for regular people to be able to invest, unlike shares which requires a lot more time investment.

    I went to financial free financial adviser. I've been offered some products with giant entry/exit & contribution fees. My limited knowledge of MF was enough to understand when I am being conned.

    The reason I'd like to invest now without prolonging it any further is that I do not want to miss out on the end of GFC (whatever left of it)
     
  4. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Katie

    I'm sure the GFC has more in store for us!

    If you are not using an advisor, it up to you to put in the time for research. 26 is a good age to start learning.

    With your small savings, you will have to pay higher MER (management expense ratio) of 2% or more on a lot of managed funds. Vanguard has some cheap funds. You can get in without an financial advisor.

    I am an index nut. I can help in this area. Otherwise can I suggest Sim's excellent website Compare Funds :: Managed Fund Comparison Charts and Statistics ,Comparefunds has all the info and graphs of all managed funds.:D



    Cheers, Johny.