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Newbe on MF's - thoughts

Discussion in 'Managed Funds & Index Funds' started by johk, 15th Oct, 2009.

  1. johk

    johk Member

    15th Aug, 2008
    I am looking into start investing long-term (more than 7yrs) in Managed Funds but I am tossing between 2 alternatives.
    Funds that I am interested in is “Colonial First State (FirstChoice) Geared Share” or “Perpetual WFI Perpetual's Geared Australian”. One reason being that the initial investment only needs to be $1000 as long as I contribute min $100/month. I do understand that they are geared and that means a greater risk.

    Compare Funds

    The other option I am considering is Raboplus as they have lower fees but there is a limited selection and they don’t have many Geared funds to choose from –Perpetual WFI Perpetual's Geared Australian is available here as well. The reason I am not 100% comfortable with Raboplus is that you don’t “own” the funds yourself and you rely on that Raboplus is going to around for a while.

    Also, if you setup a MF with Colonial or Perpetual can you easily do additional deposits – or do you have to fill out the all the forms again for every additional transaction?

    I would appreciate any comments etc,

    Last edited by a moderator: 16th Oct, 2009
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    9th Jun, 2005
    Sydney, Australia
    I've not used Perpetual, so I can't comment.

    CFS make it very easy to make additional payments - you can transfer money in using BPay or you can set up a direct debit arrangement to have the amount you wish to invest deducted directly from your bank account. They also make it easy to make regular investments.

    I currently hold the W/S equivalent of that CFS geared fund in my SMSF. I haven't really researched that Perpetual fund so I can't comment - taking a quick look back at part performance compared to the CFS fund, they seem to be pretty similar - with CFS only just pulling ahead in performance over the past 12 months (but performance in the past 6 months has been similar again).

    Depending on cost, ease of use, etc ... it seems that both might do the job.