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Managed Fund diversification

Discussion in 'Managed Funds & Index Funds' started by evisional, 27th Aug, 2007.

  1. evisional

    evisional Well-Known Member

    Joined:
    23rd Aug, 2007
    Posts:
    51
    Location:
    Melbourne
    Naturally, any managed funds are managed and diversified by fund managers. I wonder should we diversify our managed fund portfolio into different fund managers? and the level of diversification? someone said that a portfolio of 5 managed funds is a good diversification.

    For me, funds can be diversified as follows:

    2 Australian Share Funds : 60%
    1 Australian Listed Property fund: 20%
    1 International Share Fund (Asia, European, Emerging market): 15%
    and 1 Income Fund: 5%
    --------------
    Total 5 funds / 5 fund managers

    What is your opinion?


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  2. Smartypants

    Smartypants Well-Known Member

    Joined:
    2nd Jun, 2006
    Posts:
    226
    Location:
    NSW
    Hi evisional.

    I think it depends on what stage of your investing life you are at.

    Me personally, I would prefer more income in the picture, but that would be to help with other investments, eg, property.
     
  3. MJK

    MJK Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    280
    Perhaps the mix also needs to be altered depending on what sector is doing well at the time.
    EG. Some might say LPT / securities have done there dash and Asia may be looking good.

    MJK