Managed Funds Managed funds or Shares

I am looking at making some small investments in either shares or managed funds. I don't know a lot about either, however am keen to do something.
What do you think is better, and how best can i save on fees?

 

Hi Sim,
I would like to do it myself, as id like to learn, and am cautious of fee's etc. A diversified portfolio or few carefully selected shares i am not sure about, but welcome your thoughts. Property would be good, but iam still paying off our home and do not want to commit to another place. I have about $20,000 to invest and would like to add to this each month. My superannuation has done pretty well which is why i started looking at shares or funds?

 

John,

I would be inclined to jump onto morningstar, do some research on managed funds and then used Commsec to download the PDS so you can bypass the 4.0% entry fee. If you are not experienced in shares you might find the cost of buying and selling impacts on your profits, etc

Tim

 

I would look into LICs (Listed Investment Companies) and ETFs (Exchange Traded Funds). They are like managed funds but are traded on the Stock exchange. This way you get to diversify your cash, but also learn a lot more about the market and how it all works and because you already have your broker set up, it makes it very simple when you decide to dip your hand into direct share purchases.

The fees are much, much lower than managed funds as well, so by the sounds of it you would like them.

BR

 

A valid point and at those times you don't buy, although there is normally at least a few LIC's lagging at any one time.

Most definitely agree with this comment. I started with Managed funds, and still hold four different funds, but I'm slowly cashing out my Australian ones, and moving into LIC's and direct shares. For Asian exposure, I'll be sticking with Platinum.

BR

 

Hi John,

If you want to do it yourself, I would recommend subscribing to a shares newsletter. I did subscribe to the Rivkin Report a while back and found it to be good. They have a weekly radio show which members can email and ask questions. Its a good place for new people (even experienced people) to start and learn. You can also listen to questions what other people ask. Plus they make recommendations which you can research further, look at their reasoning on why to buy, and make purchase decisions that way.

I also subscribed to the Freeman Fox news letter. I found the Rivkin one more educational, however the Fox recommendations were good as well. The fox one seemed to be more 'buy and hold' whereas the Rivkin one tends to sell out more often, but isn't a 'trading' system as such.

For the $700 annual fee, I think its worth it, rather than throwing darts blind folded!

I personally don't recommend trading, there are all these charting systems, but I reckon your better making decisions on fundamentals, like the two newsletters promote.

Tom

 

You can also use YourShare to download the PDS and bypass the 4.0% entry fees. YourShare will also send you a cheque every year for 50% to 70% of the annual trailing fees paid over your managed funds, super, etc.

 

Invest smart does a simular thing.. Actually they did that trailing rebate years ago!

 

Thats true, but they do not rebate trailing commissions from ALL fund managers whereas YourShare does. Also YourShare even rebates trailing commissions over your insurance policies.

 

yeh I noticed that, I was wondering if someone was out there who rebates TPD, Life and trauma insurance, as they pay something stupid like 40% PA in trails.

Do they also rebate things like car, house etc insurance?

 

Hi crc,
Basically any insurance product that pays a trail YourShare will rebate against. Insurance trails are not as straight forward as managed funds, super, etc. Life, Trauma, Disability seem to carry the highest trails. But contact YourShare and tell them the insurance provider and product, and they will advise exactly how much trail your currently paying. YourShare also rebate 100% of upfront commissions.
For the record i am associated with YourShare - so think its a great product. But if you know of any better deal, let me know

 

Before you follow other people ideas you should get basic knowledge about Stock Market.
The only sensible way to go before you commit your money in direct shares or funds, is to learn as much as you can from books, seminars etc.



crc_error (I like your nick name!)

Incidentally well known 'guru' R.Rivkin made a lot of money NOT as a Stock Market investor BUT as an art/antiques dealer.

 

Thanks!

Maybe Rivkin made money from art etc, but he still had 30 years plus experience in the sharemarket, which would suggest he would know something and can pass some knowledge on to someone who knows nothing!

Its just like saying the owner of Platinum Asset Management made his money from running a funds management business.. Maybe he did, but he still is good at investing.

 

"Maybe Rivkin made money from art etc, but he still had 30 years plus experience in the sharemarket, which would suggest he would know something and can pass some knowledge on to someone who knows nothing!"

His experience was mainly based on insider trading/activity...
Before he ended up in jail he managed to make $300 in Qantas shares.
You are right, he probably knew how to swim in a dirty water.