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International Share Fund

Discussion in 'Managed Funds & Index Funds' started by Compleks, 8th Jan, 2008.

  1. Compleks

    Compleks Well-Known Member

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    Even though my Managed Fund portfolio has been taking a beating lately, I would still like to follow through with my original plan and complete the portfolio.

    I'm lacking an international share fund, and am not sure what I should be looking for. At the moment I'm thinking of investing in the Platinum International share fund (investing through CFS). I don't have much reasoning for this decision though.

    Do you think I should invest now ($5000) or wait?
    People keep telling me to wait, and take my money out etc... etc... But what am I waiting for? I'm not smart enough to predict the market, and I never did get that crystal ball I wanted for Christmas.

    Do you think a generalised fund is a good idea, or should I get specific (asia, india etc...)? I like the idea of staying generalised at the moment, and CFS doesn't have alot to offer in terms of Int. Share funds from what I've seen.


    Help me! (again).

    Thanks guys, I feel bad about crawling back here every time I need help.
     
  2. crc_error

    crc_error The Rule of 72

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    actually the platinum fund has held up quite well. I'm in the Platinum Int Brands fund and have been happy with the way its been holding up. I suspect their conservative approach has paid off!

    Prehaps don't put all your $5000 in, but put in $1000 per month over 5 months so you average your way in.

    Just stick to your 5 year plan.
     
  3. crc_error

    crc_error The Rule of 72

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  4. Compleks

    Compleks Well-Known Member

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    Thanks mate.
    I actually had a look at the Platinum International fund on the compare funds site a little earlier today.
    I was surprised to see it holding up so well.

    My only concern is that I can return 8% from my bank account, and am unsure whether the extra 2% is worth the risk.
    I'm not sure if CFS supports it, but I might be more interested in something with higher performance over the long run.
    (I hope I don't sound too greedy).
     
  5. crc_error

    crc_error The Rule of 72

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    how can you get 8% from your bank account?
     
  6. Compleks

    Compleks Well-Known Member

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    Sorry, my bad. That's meant to be 6%.
     
  7. crc_error

    crc_error The Rule of 72

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    the difference is a fund should make you twice as much profit. compound that and their is a large end result differance.

    Your bank account is taxed at your highest tax rate. Holding a fund is mostly capital growth which is taxed at 50% of your tax rate when you sell. Any dividends paid usually come with franking credits (tax paid by company).

    So its not 'only' 2% better.

    In saying that, a higher risk comes with the international fund, and you need to be confortable with it and view it long term.

    The platinum fund was doing 20% PA until about a year ago, so this global slow down has taken its toll on everything.

    Is the boom over? well the down is down another 238 points, so today will be another crap day on the market.. how much more can investors wear?
     
  8. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    ... except for a fund which has returned less than 4% over the past 2 years :rolleyes:

    Using the amount you can earn from a high interest savings account is a good benchmark, given that it is almost risk free.

    Over the past 6 months - if I had just held all my cash in the bank I would be far better off financially than I am right now!!!!
     
  9. crc_error

    crc_error The Rule of 72

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    I agree!!!!!!! I have been slaughtered in the last two months.. but who was to know all the crap would happen.

    Anyway thats the benefit of regular investing, you buy up more during these dips. The people caught out are those with margin lending and high gearing who can't continue to hold and have to sell. (typically at the worst time)
     
  10. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Guilty as charged :(
     
  11. Compleks

    Compleks Well-Known Member

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    Thanks guys.

    I know you can't tell me what to do. But if you were in my position, what would you be inclined to do?
     
  12. crc_error

    crc_error The Rule of 72

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    I already said what I would do.. I would make multipal entry points say monthly to dollar cost average your way in.

    Or you could get in when 'there is blood in the streets' with a potential of getting in during 'sale time'

    When you go into Myer during the boxing day sales, do you say 'tell me what to do'? :)

    I have a long term view, and I was happy to get in 2 months ago, and nothing should change today, just because we have everything at a discount.

    in 5 years, its not going to matter.
     
  13. crc_error

    crc_error The Rule of 72

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    I probably wouldn't recommend gearing, or a margin loan for you at this stage though.
     
  14. Compleks

    Compleks Well-Known Member

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    Thanks mate.

    I usually avoid MYER on boxing day though ;) .

    I guess I'm still up in the air about which international fund to go with. I'll probably just bit the bullet and go with platinum, since that was my original plan (and yes, I'm thinking long term. 5-10 years or more).
    Once I have this next fund in my portfolio I plan to leave it all alone for a while, and just make contributions when I can afford to.

    I would like to expand my investing into shares, or something a little more hands on I think.

    Cheers.
     
  15. crc_error

    crc_error The Rule of 72

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    even though Platinum hasnt done to well over the last 12 months, they were one of the few conservative funds with large fixed interest holdings in anticipation of doom and gloom.. now all the cow boy funds have been hard hit and all the great gains wiped out in a flash.. so this type of management can be quite good.

    Platinum are a conservative investor, which in the current climate is a good thing!