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Investing $10k

Discussion in 'Investing Strategies' started by GoldCoastGirl, 13th May, 2007.

  1. GoldCoastGirl

    GoldCoastGirl Member

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    How would you invest it?


    When I finally reach 10K in savings I would love to be able to put this money into something that will give me decent returns yet isn't terribly high risk (moderately high not really high). Otherwise I will just keep it in a cash management fund or something similiar (term deposit that keeps rolling over) as I want to be able to still have relative ease of access to the money without incurring any penalities in withdrawing.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Depends on your timeframe - how long are you prepared to sit on that investment before you are likely to want to use that money for something else ?

    If you are prepared to hold for several years, a good conservative share fund like the NavraInvest Blue Chip Australian Share Fund is a good choice in my opinion. The key with any share or managed fund investment is that a sudden change in market conditions may see your investment capital eroded over the short term. Over the longer term, this should be overcome, but I don't recommend investing in such things if you are likely to need all of your money back within a year or two.

    Otherwise, just keep it in a term deposit (or perhaps a high interest savings account like ING Direct if you prefer faster access to your money).
     
  3. GoldCoastGirl

    GoldCoastGirl Member

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    I would probably go with an ING Direct Savings Maximiser Term Deposit that keeps rolling over as I currently already do as I would want to be able to access the money within 2-3 years time (or anytime that I really needed to access the money without penalty ie in cases of financial difficulty).

    Yet the question still stands.

    How would YOU invest $10k AUD ?
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Oh, that's easy.

    Right now if you gave me $10K, it would go straight into the margin loan, to be margined up to about $30K and invested in my current best performing fund (probably CFS W/S Global Resources).
     
  5. Simon

    Simon Well-Known Member

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    I would do something similar.

    Or use it to pay down nondeductible debt. If a home loan I would create a LOC or a split loan for investment purposes and immediately draw the funds out on the other side to invest via my margin loan.

    Debt recycling I think we call it.
     
  6. bundy1964

    bundy1964 Well-Known Member

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    Margin loan for me.
     
  7. voigtstr

    voigtstr Well-Known Member

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    With 1000 I would park it in Navra retail fund, and contribute to it monthly.

    If you wanted more growth, perhaps Colonial First State's Australian Geared Share fund.
     
  8. crc_error

    crc_error The Rule of 72

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    I would dump it in a geared share fund, most aggressive route possible, to make it grow, as $10k is really nothing.. If you can't put away $10k for the long term to invest, then there is something wrong..

    What will be so important that you just can't invest this money for your future?
     
  9. Qaz

    Qaz Active Member

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    I'm kind of suffering a similar dilemma at the moment. I have about $49,000 in savings and i'm not completely sure how to proceed.
     
  10. Here_To_Learn

    Here_To_Learn Well-Known Member

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    If you are after a good SANF ( Sleep at Night Factor ) I would take out a margin loan and look at investing in the Navra Fund.

    Looking at the Navra Fund's past track record you should be pretty happy in next 2 - 3 years when you take your money out.
     
  11. voigtstr

    voigtstr Well-Known Member

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    I think the comments that apply to 10k apply equally well to 49k.

    Margin loan navra retail if you want the sleep at night factor. Or try an already geared fund link CFS australian geared fund if 2% swings up and down (overnight) dont scare you.

    You could use some for a property deposit and the balance in an income fund like navra to assist with the negative gearing.
     
  12. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Last week was particularly volatile ... June 13 - 20th, CFS W/S Geared Share Fund up 8.39% (in 5 days !!!), 27th June, it drops 4.04% in one day, but has also risen up to 3.3% in a single day in the past month. See attached chart!
     

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  13. Bantam Roosta

    Bantam Roosta Well-Known Member

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    For me, margin loan at 50% turn it into $20k, spread between a couple of LIC's. ARG, MLT, AFI are all currently at a discount.

    BR
     
  14. DaveA

    DaveA Well-Known Member

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    have a look at perpetuals geared fund... its just as bad, largest drop was 3% but biggest gain was 3.86%.. dropped nearly 15% in the week in feburary with the china correction...

    not for the faint hearted...
     

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  15. Yiddo

    Yiddo New Member

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    I would buy $10K of ARG rolling instalment warrants (ARGIZQ) Diversification and leverage in one nice consistent performer.
     
  16. FrankGrimes

    FrankGrimes Well-Known Member

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    Second this.. Or Navra isn't a bad option either