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Selcting an Asian/China Fund

Discussion in 'Managed Funds & Index Funds' started by skemp, 20th Oct, 2006.

  1. skemp

    skemp New Member

    Joined:
    20th Oct, 2006
    Posts:
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    Location:
    sydney
    Hi,

    Firstly, I'ma beginner and have just signed up to this so please forgive any naivity on my part.

    In an effort to overcome the natural obsession with investment property, I am wanting to invest $20k in a managed fund and believe that one which invests in China/Asia is a good option. I have read a bit about the Premium China Fund for example, but am more than open to alternatives (eg one that is more diversified across Asian countries such as India).

    However, I am concerned about 2 things: i) finding the right one; and ii) incurring high fees/commission

    Therefore, I'm a bit reluctant to go through a financial planner (who is likely to be affiliated with a particular financial institution).

    Any advice or words of wisdom would be much appreciated.

    Thanks,

    Stephen
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Location:
    Sydney, Australia
    The Platinum funds are quite good ... there are two to chose from that invest in the Asian region - Platinum Japan and Platinum Asia.

    Platinum Japan invests in Japan and Korea.
    Platinum Asia invests in Korea, China, India and everywhere else.

    Minimum investment is $25K, so you'd need to either save a bit more first, or use a margin loan to get you over $25K.

    MER is 1.54% ... which is not exactly cheap, but not as expensive as many funds.

    According to Platinum, the Platinum Asia fund has done 21.67% over the last year, 35.28%pa over the last 2 years and 28.9%pa over the last 3 years (has only been operating for just over 3 years).

    I haven't looked into any of the other funds out there ... so I'm not in a position to compare.

    I have money in both the Platinum Japan and Platinum Asia funds ... but the Japan fund has not been performing well recently.
     
  3. skemp

    skemp New Member

    Joined:
    20th Oct, 2006
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    Location:
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    Thanks... $25k is possible.
    Where can I compare my options of Platinum versus others in one place (alongside fees etc)? I've tried to search on the net but no luck.
    Any more pointers would be great.
    Thanks in advance.
     
  4. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172

    Hi Stephen and welcome to InvestEd. As I see it you've got basically two choices.

    1) Do lots more research, narrow down the list of likely funds, read the product disclosure statements carefully, analsyse the fee structures in particular, get comfortable with the relevant fund/s and then invest your money.

    OR
    2) Get some good advice and pay for it.

    As a gloss on option 2, perhaps you can agree to pay someone for some limited advice about what would be a good asian fund for you. Tell the planner you're not prepared to pay an upfront fee but that you'll pay them by the hour instead. Tell them how many hours you're prepared to pay for at their quoted hourly rate plus GST and request they cap their fee at that amount. Be realistic about the time required and be prepared for many planners to reject this approach.

    If you have the time, inclination and skill to take the 1st option then good on you and get cracking! Ultimately I'm sure that's the option that will be the most intellectually rewarding - particularly knowing the buck stops with you.

    BUT if you'd rather concentrate on property, if that's what you do best, but quite sensibly recognise that some diversification is useful, then get some advice from a qualified adviser about the best options for you to proceed. And be prepared to pay for the quality advice. If you're particularly worried about planners tied to particular financial institutions then why not see an independent/boutique planning service. There are plenty around. The Financial Planning Association should be able to help you find a planner in your area.

    Remember it's not necessarily an all or nothing decsion either. Perhaps you can place your money as advised by a planner until you gain the knowledge, skill and confidence to make your own managed fund decisions?

    Remember also that whilst most "property people" me included :rolleyes: like to think we can and should be able DIY all investment decisions I think you get to a point where you realise you can't be an expert at everything and it's okay to take advice from others with expertise in areas you're not familiar with. Remember you retain control of your money at all times, so don't be reluctant to get advice - whilst obviously keeping an eye on fees (which must be fully disclosed up front).

    Cheers and good luck
    N
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Tradingroom is a good place to start for fund comparisons.
     
  6. handyandy

    handyandy Well-Known Member

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    Location:
    Sydney Nsw
    Another site that provides search tools is investsmart.com.au

    Cheers