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High growth fund for childs education fund

Discussion in 'Managed Funds & Index Funds' started by islandgirl, 18th Jun, 2007.

  1. islandgirl

    islandgirl Well-Known Member

    Joined:
    18th Sep, 2006
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    118
    Location:
    Middle of beautiful Moreton Bay, Qld
    I've set up an education fund for my son. I'm looking for a high growth fund that will increase his capital so eventually I can buy an IP for him. All the funds I have researched are mainly high income funds to fund my IP's. However I first need to get his capital built up a little. I though I would use an income fund such as Navra to fund the leveraging of a high growth fund. Does this make sense? He's only 6 so it has a few years to build!

    Any suggestions would be appreciated.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    9th Jun, 2005
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    Location:
    Sydney, Australia
    I think a geared share fund is usually a good way to go ... especially given that you will be taking a long term view - and can wait out any short term volatility that happens with geared funds (and there will be volatility - especially if the market drops).

    I like the CFS Geared Share fund (Australian shares) ... invests in similar shares to NavraInvest (good quality blue chips), and has consistently performed well over the past 7+ years (26.70% pa over 7 years is a very good return in my opinion).

    I'm sure there are other similar funds out there ... so do a bit of a comparison to check out fees and how reliable the returns are etc.

    Not advice - just a suggestion :D
     
  3. islandgirl

    islandgirl Well-Known Member

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    18th Sep, 2006
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    Location:
    Middle of beautiful Moreton Bay, Qld
    Thanks Sim
    I have been tracking the CFS Geared Shared Fund and admittedly the volatility scared me a little. But looking at a long term view, particularly since I don't need to draw on the money often, its a good suggestion.