Managed Funds Investing in Navra Fund

I think it mostly comes down to your own personal situation and preferences.

In general, I'd say the best time to invest is usually "now", regardless of what part of the quarter we are in.

Some things to consider though:

Investing near the end of the quarter means you get a distribution sooner, but at the cost of a drop in your capital value. Essentially, you are converting your capital to income, and you will need to pay tax on that income at the EOFY. This can be a good thing if, for some reason, you would like to show a higher income on your tax return, or perhaps if you have accumulated losses you can offset the income against. However, in most circumstances, you will be worse off from an after-tax point of view in doing this. You may get a slight longer term benefit through a higher cost price, meaning (very) slightly less CGT when you sell.

Be warned - if you really don't like seeing your holding value at less than your cost (which it will be in the new quarter after the unit price drops post-distribution) ... then avoid investing towards the EOQ! It's mostly just psychological ... you haven't lost money (ignoring tax), you've just converted some of that capital to income, and if you reinvest that income, your total value should be roughly the same as what you originally invested (in theory).

Investing at the beginning of the quarter, once the unit price has dropped, means that you are buying more cheaply - you get more units for your money, which should increase your wealth long term (especially compared to NOT reinvesting distributions into more units). You have to wait longer for a distribution, but you were only going to be converting your capital into income for that distribution anyway - so there's no real difference. You will have a slightly lower cost base, so potentially more CGT when you sell, but if you hold long term, that difference will be fairly trivial, and the 50% CGT discount for holding more than 12 months would put you in a better position anyway.

Mid-quarter basically gives you a cross between the two situations. You are (usually) paying a higher unit price, which will be returned to you by way of distributions at the EOQ, and gain a slightly higher cost-base.

My suggestion is that the difference between investing just before or just after a distribution is relatively negligible over the long term, and you will potentially see a much bigger gain by investing sooner rather than later (assuming the fund continues to generate profits). One might argue that if the fund is generating 10%+ returns per year, then you stand to lose that much (pro-rata) by waiting.

Of course, arguments about timing the market may sway your decision either way ... but ignoring that, I still say the best time to invest is now (whenever "now" is!).