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New to Investing.. Some Advice?

Discussion in 'Investing Strategies' started by MasterCheif, 22nd Sep, 2007.

  1. MasterCheif

    MasterCheif Active Member

    Joined:
    22nd Sep, 2007
    Posts:
    43
    Location:
    Melbourne
    Hey..

    I am new to the Forums, and I have found reading them very interesting.. So Thanks! :)

    I am 21 and just started working full time. I have around 40k in savings and have just bought into a Managed fund with 1k with a regular investment of 1k per month.

    The managed fund is Macquaries Small Companies Trust.

    Is there anything I should look out for? Is my investment strategy ok? I am probably going to leave the 40k in ING as I will probably be using it for an investment property fairly soon.

    I realized after reading these forums that i should have gotten a discount broker so the fees would be less with Macquarie, but i guess its too late now?

    Thanks everyone.
     
  2. archangelsupreme

    archangelsupreme Well-Known Member

    Joined:
    7th Sep, 2007
    Posts:
    206
    Location:
    Australia
    LOL,

    I'm almost in the exact same position as you. Nice to see someone going through similar things as you...LOL

    Invested $8k into the Macquarie's Growth Trust (probably same reasons as you and most others) a couples weeks back with $500 regular investment.

    So far...not once have i seen the value increase beyond my initial investmeent. LOL, kinda expected...though i'm in this fund for the long haul and will continue to add to it. Fingers crossed.

    I went through an online broker (i.e. Investsmart) and didn't pay any entry fees nor fees on additional investments.

    I don't think it's too late, you can always go to Investsmart and fill in one of their Broker-nomination forms....they'll rebate the entry for you i think or at least any future contributions u make.

    Haven't started thinking about property....my next goal is to invest in a couple more managed funds and study up on investing in shares. THough hope to focus on property in the next 1-2 years.

    Good luck..
     
  3. MasterCheif

    MasterCheif Active Member

    Joined:
    22nd Sep, 2007
    Posts:
    43
    Location:
    Melbourne
    Hey.. Which other funds are you considering investing in? Are you going to continually have a savings plan for each fund? Or stop when they get to a certain value?..

    I will probably contribute money to my single fund until it reaches around 20k. Then look at other possibilities.

    How does the income distribution work? For the Small Companies Trust it says that it is 17 cents. Does this mean that for each unit I own, I will be paid 17 cents? And this is quarterly? eg. end of September.

    I think i will look into investsmart so that i dont have to pay contribution fees, but how is it free?

    Thanks :)
     
  4. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Yes that it is how it works, you can divide you distribution by the unit price to calculate your yield as a %.

    It's not free, it's just cheaper as they'll keep the ongoing trail commission (usually 0.4% to 0.6% per annum). That keeps them happy.

    Cheers,

    Dan