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Navrainvest Ltd Asia Pacific CAPITAL PROTECTED GROWTH Fund

Discussion in 'Managed Funds & Index Funds' started by voigtstr, 27th Nov, 2009.

  1. voigtstr

    voigtstr Well-Known Member

    24th Jan, 2007
    Has anyone else checked out the Navra forum, and read the thread at Navra Financial Services (I'd post there but don't have posting rights because I haven't attended a Navra course)...

    Not wanting to be negative about a Navra conceived product. (I've been to a product launch, read the navra forums, and respect the man himself) But would trading etfs, or other funds with toe in Asia (eg even bhp which um sells stuff to asia) be a better bet (with well managed stops ... riding the trends...blah blah) Surely over 10 years a live person could out trade a computerised system that only trades "monthly".

    Is this product only for those who don't want to learn how to trade? (and yet I'm only just learning how to trade...(so far Van K Tharp rings true with me)) Is it a black box for people to put their money in and hope for the best?
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    9th Jun, 2005
    Sydney, Australia
    Note that you have to be a registered user on the Navra forums to be able to read that thread - not visible to non-registered guests.

    If you know what you are doing, you can probably out-trade any managed fund. I don't think there's much question there.

    The goal of the fund is to make good safe returns for its investors - not to be "the best trading system ever".

    Trading is not for everyone. It takes a lot of skill and a particular personality to be able to consistently make good money while trading.

    If you can (or think you can) make good money trading, then why would you bother looking at managed funds? Do it yourself and don't pay someone else to do it for you!

    This applies to any actively managed fund - not just the Navra AP Growth fund ... don't pay a fund manager to manage your money if you are confident that you can do as well on your own!!

    Managed funds are for out-sourcing your investing.

    One thing to note about this fund is that it is a 100% geared product for a fixed 10 year term with a 150% guaranteed return at the end of the term (ie if you hold for the full term, you will get at least all of your money back plus 50% ... even if the market has crashed).

    This is a very different strategy to going out and trading on your own - it is designed for maximum leverage with protection.

    As for "black box" - that depends on your point of view. The trading system should be explained at least conceptually in the PDS (which is not available yet), but the exact details of how it works (ie buy and sell points, weightings, stock selection, etc) would be considered proprietary information - you are not likely to be able to replicate the performance of the fund on your own. But then, most actively managed funds are similar - the fund managers don't tell you exactly what they do to make you money ... so it's no different in that regard.

    This is a structured product - it's not a standard managed fund, you can't just fill out a PDS, you need to obtain advice before you can invest to make sure you understand the nature of the product and what your obligations will be in relation to gearing.