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Discussion in 'Introductions' started by potter07, 21st Sep, 2007.

  1. potter07

    potter07 Member

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    21st Sep, 2007
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    Hi people,

    I was looking up different investment funds and stumbled across this website- let me begin by saying how useful its been; a quick search having answered most of my initial queries.

    A little about me- final year law student, moving into Corp Finance next year as a grad. I only very recently got into investing- as a student, not a heap of cash to throw around. I managed to get onto some blue chips like Macq & Rio recently when the market crashed, so fairly happy with that.

    Basically, I'd like a recommendation as to managed funds (I apologise if I should have posted elsewhere). I am currently considering either the CFS Geared Share Fund, or Macq Small Companies Growth Trust, to a sum of roughly 6 k, which I'd contribute to considerably next year. I have a fairly high tolerance to risk (no loans, live at home, etc) therefore am interested in growth as opposed to income. Despite Macq's figures for the last year, the CFS Fund appears to perform better overall in the 3-5 year bracket, coupled with slightly lower fees (.50%). What would you recommend?

    Please let me know your thoughts, I appreciate any advice. I look forward to contributing in the future.

    Cheers, potter07 :cool:.
     
  2. Glebe

    Glebe Well-Known Member

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    I don't know either fund specificially, but generally, If I was 21 again I'd go a geared fund all the way, baby.

    You've got plenty of time to ride the up's and down's of economic cycles. A geared fund should magnify your returns in the long run.
     
  3. DaveA

    DaveA Well-Known Member

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    compare apples with apples, its not really fair to compare a geared fund with a non geared fund, even if the returns are the same.

    Comes down to risk tolerance, if you think the ASX has got legs left in it, then the more invested (eg via geared) the better return youll get... Me personally am a bit skeptical of putting money in a geared fund at the moment but id be happy to invest into normal managed funds with a margin loan. (Same result i know, i never said i made sense).

    A tip: large one years skew the figures a heap, try and go back and work out how much each fund made per year instead of just using a 5 Year PA %...
     
  4. potter07

    potter07 Member

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    Thanks for the input guys.

    I'm leaning towards the Geared option, which seems to have offered more consistent returns in previous years. The Macquarie alternative appears slightly less successful in previous years (about 7% less); I think last year's return on 59.36% growth has propped up the 3 and 5 yr PA figures.

    As Glebe said, I'm probably in a good option to ride the ups and downs of a geared fund.
     
  5. DaveA

    DaveA Well-Known Member

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    However can you stomach the downs. The geared funds were down about 35% last month (for the month). You need to stomach these to get to the ups... If you feel youd sell the investment after a 35% drop (or even 20%) then maybe reconsider....

    Also I looked on the macq website and they dont offer a list of prices for the fund, only the current price....
     
  6. meakinmaster

    meakinmaster Member

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    hey there potter07,
    as a young guy myself, there are so many choice to make. My views are a little more safer, as I am young I have a longer time frame. I have 2 manged funds, plus a nice shar portfolio managed by an advisor. I agrree with you that you want to be a little more risky but my advice is maybe go for something alittle more steady for maybe the first year or so... so you can get the feel for what happens?? I dont know.

    would be keen to hear how what you choose and how they go? nad I agree that as a young guy its hard to find other people your own age with the same interests! we are the one that will be laughing later.

    H-SPHERE platinum platipus fund is not a bad one. I always say you cant rely on past figures....... the future is waht is important.

    Jase
     
  7. potter07

    potter07 Member

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    Jase,

    Thanks for your insight. Took the plunge today and sent off papers for the CFS Geared Fund (about 6 k worth), the rest I have tied in a portfolio I'm maintaining, which is essentially limited to blue-chips.

    I had a look at the fund you suggested, and I agree it looks good. In a few months or so (when FT work starts) I'm going to look at diversifying into other funds. At that point, a margin loan might be the go as well- need some more research into this though.

    I appreciate your input, and will keep you up to date with any moves I make.

    Cheers, potter07:cool:
     
  8. meakinmaster

    meakinmaster Member

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    cool! sounds good ther are so many options!! wish I knew also what to do half the time! Jase
     
  9. crc_error

    crc_error The Rule of 72

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