Managed Funds Great buying opportunity.

You have a great view! Its times like this where you pickup some bargains.. they dont come around very often.. so jump when given the opportunity!

I was buying yesterday and Monday.. Just because some low-doc finance deals are shaky in the US, hardly think it warrents 'the end of the world'.. The only people who will suffer from this will be companies like GE, bluestone and pepper..

 

At least a week. Start processing your application now, but do so with the "cheque from you" option to initiate it. That way its all good to go, and then the margin lender writes you and says "please send your cheque to me so I can buy those funds". You then wait until you like the level and fire your cheque in. It then should be in place the following day at the outside.

PS I'm talking from experience. When I traded the last pull back the delay in processing my new margin loan cost me $20K in opportunity cost of being out of the market despite my timing the sell well.

Personally, I reckon a week or two will be a good buying time for this pull back anyway. The one I traded bounced back very sharply which gave me insufficient time to trade it.

Cheers,
Michael.

 

Is it possible to buy NavraInvest Retail units on E*Trade yet? That would be quicker than a cheque in the snail mail, no?

You can buy/sell in to the wholesale fund I see...

 

You can buy them on e*trade, but you dont own the units yourself, and you dont control choices like reinvesting distributions (they pay the distribution into your e*trade account instead). E*trade also charge a portfolio fee. Having said that, they're also giving you access to the wholesale fund, but with a minimum investment of 1k.

 

I have just applied to increase my holdings by 50%. It takes my LVR up to just under 60%.

Not a huge amount but I wish to keep my powder dry as we are just about to sign a contract to build the new PPOR.

Going through Leveraged Equities and I hope that they can process it all before the unit price recovers!

 

Or hopefully after the unit price falls further..

 

Is that right? are the unit prices up to date?

How much is the portfolio fee? Do you need to keep your cash in an etrade account or can u just link and existing bank a/c eg anz a/c?

That sounds much easier that putting a cheque in and waiting...sheesh! you learn something new every day.

Cheers
N

 

The unit prices appear to be up to date on etrade.

from the e*trade website: https://invest.etrade.com.au/RatesandFees/Default.aspx

"Lower Portfolio Fee
Retail funds can charge ongoing fees of up to 2.5% p.a. plus entry or exit fees and wholesale funds usually have ongoing fees between 0.5% p.a. to 1.1% p.a., and no exit or entry fees. We charge a portfolio fee of 0.66% p.a. per month including GST for managed funds holdings of up to $100,000 deducted from your cash account, not the fund investment. The portfolio fee reduces for holdings in excess of $100,000 – for full details, please refer to the table below. This means you would usually pay between 1.4% p.a. and 2.0% p.a. in total depending on the managed fund selected from our service.


Total Holdings
Portfolio Fee
For holdings of value up
to $100,000 (inclusive) Flat fee of 0.66%

For holdings of value
greater than $100,000
and less than $500,000 Fee of 0.66% for first $100,000
and only 0.55% on excess

For holdings of value
greater than $500,000 Fee of 0.66% for first $100,000, only a fee of 0.55% for
next $400,000, and only 0.5% for excess greater than $500,000"

I think the only downside to using e*trade is that the divendends are paid to you cash account within e*trade rather than being reinvested.

 

Yikes,
e*trade charge a bit, probably not worth it. The old cheque transaction works OK I guess, although I have missed out on some healthy gains while the cheque and application has been processed in the past.

For example, when this little 'fall' in the market stops, I will be back in. Trouble is, when I think there is a recovery, my application will always miss by a couple of days.

I wonder if Navra would be happy with a cheque arriving say on a monday - placed in trust, then the application form arriving by fax on the day you decide to buy back in. And that might be two weeks later.

By the way, BHP down 3.5% I heard on the dow on Friday. So this fall in the unit price is not over yet.

 

Just sent my app in to St George for another 100k Navra units at 55% LVR.

Corrections are meant to be opportunities.....

I Hope..)

 

you were searching, and now you have found!

Exactly, correction = opportunity

Usually we see a 10% drop in a correction, so the all ords could go down another 100 pts down to 5850..

 

Looking at the XAO chart, we could drop down as low as 5600.

5850 comes in at a 10% drop which is the 'usual' drop we see during these corrections. But looking at my chart, we could see a further drop down to 5600.

what are your views?

 

Here is a chart for the property index XPJ.

Seems like the property index is showing 'better' value than XAO.

property could fall another 100 pts before it hits support.

 

I put support for the XJO (ASX200) at 5900... but its broken channel before on the downside and recovered.

PS. You'll note I was checking this before this correction played out. The writing was on the wall then when we were top of channel.

Cheers,
Michael.

 

so we both agree there is more to go before this correction bottoms out?

 

Yep,

And it seems Dr Shane Oliver is of the same opinion, but in the context of an ongoing cyclical bull market.

Worth a read.

http://www.amp.com.au/display/file/...00.pdf?filename=olivers_insights_04072007.pdf

Cheers,
Michael.

 

Yes, that overall chart is clearly still up trending, just coming back down to the bottom channel. Down the bottom will be a great buying opportunity.

 

crc_error

Before you use charts I would suggest that you learn first how to correctly draw support, resistance lines.
Below is XJO without today's data.

 

dont we love these colorful charts!

But whats wrong with mine?

 

Try to draw resistance line on XPJ between 25 Jan 05 and 12 Oct 06 also on XJO between 18 March 05 with 26 Feb 07 - you'll get a different picture.
Sometimes to draw line correctly is tricky, but if you get it right odds are in your favour.