Managed Funds Just some advice

Hi guys, I've been browsing these forums for a few weeks. I kind of have an idea of what i wanted to do, but just wanted some advice as I'm relatively new to things.

I'm 21, and still in uni, and will be for another 4 years. I've saved up 10k so far, and can contribute about $500 a month into investment funds for the next four years. My time frame is around 5-6 years and I was willing to go after a above average risk profile.

I was just wondering what types of managed fund categories should I be looking at? (considering the apparently slowdown in economy?) and any fund suggestions that i should have a look at? Also how many funds should I consider holding?

I know its not much money to start off with, but i want to have something to play around with once i graduate.

Thanks in advance

 

Hi Jauzion,
at your age and risk profile (wish I were!) I would be considering CFS (FC) Geared Share. You probably only need to consider only one or two funds in your portfolio. You should be able to set up a regular monthly investment into the fund(s). The important thing is to start now!

 

Thanks, I've started up with $1000 in the colonial first state geared fund and also the colonial first state property securities fund.

However with the rest of the 15k I'm not sure whether to stagger the funds given the volatility recently or whether to deposit the whole amount.

 

Jauzion

This volatility is worrying me too.
I would probably go for a 6 or 12 month term deposit.

Good luck.

 

I would keep adding to the 2 funds you have every month. (I have the same funds)

The odds are the market will run up into the US election. The odds are the mining boom will continue.

The market always climbs a wall of worry. So don't worry about being worried, do the opposite to what you think is natural. IE, if you think it is best to stay out of the market then it is best to get in

It's weird the way that works.

If you have a long term outlook, (like I do) just keep adding to the funds.

I try and keep a 50/50 ratio to shares/mutual funds and property/property trusts. As your net worth grows, think about diversifying.

Hope that helps.

 

If you have a long term view for the managed funds, then every time the unit price goes down, the units are getting cheaper to buy!

When the price goes up, and long term, they most likely will, you will have got more bang for your buck, if you were continuing to buy while the price was low.