Managed Funds navra vs other managed funds

Alan
Yes as far as the example goes, that is correct.
As you say comparing the two is problematic because they are such different animals.
The example is way to simplified and certainly not to base any models of any sort on - it is more to explain how the distributions work - it cant be looked at as a pseudo fixed interest investment.

I also note that Navra has far exceeded the 10% since it's inception.
Probably more important to look at is the second part of the example looking at actual historical performance.

Personally, I still maintain that Navra is good for a limited set of circumstances. You are effectively chopping off the legs of any future growth for the sake of some short term (very inefficient) income. If your circumstances require that, that is great, but otherwise there are probably better options that could be looked at.

At the end of the day, Navra hasnt been tested over the full economic cycle, so there is still a valid argument that it could go well in the future.

 

Alan, that's easily in the Top 3 ever most perceptive and informative posts about NI have ever seen (IMO anyway). Well done. Let the discussion continue for the greater good

I've been fortunate to have a dream run in my involvement with NI which runs rings around my feeble attempts at direct share investment. I am right in the 'mum and dad' category you mention, and I'd caution any other newbies to understand the share market is fickle and volatile compared to property, no matter whether you're in penny dreadfuls, NI, other MF's or blue chips. I must admit I'm not devastated that all my dough is in property at the moment ....

 

Coop I think its worth considering a lot of people have used NI exactly for what I was told it should be used for - shares for income, property for growth, build up enough for your next deposit through the sharemarket income, borrow against equity gained, start all over. Since I was introduced to NI I reckon it'd be a fair bet more than a few people now have a number of additional IP's they mightn't otherwise have been able to service. But if I can't speak for others, I know I have one very decent PPOR I would never have dreamt of affording 4 years ago which Navra gave me the momentum to achieve.

So their NI units might have been sold off or only worth what they paid a few years ago, but the person's nett worth will potentially be vastly better than having not been involved with NI, if they've been using the investment as part of a grander plan.

Cheers
Carl

 

Coops

Fair enough........

 

Why thank you Carl, and may I say I enjoyed your two other posts as well.

By the way, good to see you back again.

A young family, new house and work can be time consuming can't it? Don't I know it! ( Hmmm.....now let me see.....was this afternoon gymnastics, netball, swimming, little athletics, soccer or dancing )

 

What !? They expect transport later in life as well !? Actually she has just signed up for her first dance class (not that she is any stranger to events having completed swimming classes, 'jungle music', 18 different kinds of playgroup, and lord knows what else). And she's only just turned 3. I hope the rest of these investments work out !

Cheers Alan