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Should I invest in many managed funds or just a couple?

Discussion in 'Managed Funds & Index Funds' started by archangelsupreme, 7th Sep, 2007.

  1. archangelsupreme

    archangelsupreme Well-Known Member

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

    I'm a new investor.

    Just wondering if it's better to only have a couple of managed (i.e. 1 or 2) or should I spread my investment a bit more and invest in 3+ fund with varying levels of risk...i.e. balanced, growth and aggressive?

    I've just recently invested in 2 funds...one in an aggressive fund and one which is recommended in the market (i.e the BT Imputation Fund).

    My portfolio at the momment doesn't really cater for any International shares....am I spreading myself too thin too early? Or should I be looking at shares instead for any additional ivnestments?

    Thanks. Sorry I know i ask too many questions...
     
  2. bundy1964

    bundy1964 Well-Known Member

    Joined:
    22nd Dec, 2006
    Posts:
    351
    Location:
    Adelaide, SA
    First you need to know what your risk tolerance is.....and what type of fund you want, income or growth?

    I feel more comfortable in my own backyard so for now I am mostly local, pushing my comfort level to look into Asia and o/s brands.

    4 or 5 funds should cover most "food" groups for you, some funds do try to do multiple groups but most seem to do it poorly.

    Direct shares are for when you think you can beat a funds manager or your investing for the long run. The market will soon tell you if your better or not.
     
  3. Meggsy

    Meggsy Well-Known Member

    Joined:
    15th Feb, 2007
    Posts:
    61
    Location:
    Brisbane, QLD
    I wouldn't worry about asking too many questions, I've found this is one of the best places to learn. I started investing in managed funds about two years ago, so I'm still pretty new at it as well, however I did have the same questions when I started.

    Personally I started with one Australian emerging leaders fund making the minimum initial investment and adding monthly to dollar cost average. After a couple of months I purchased units in an Australian property fund, again buying the minimum amount and adding each month via regular savings plan.

    This suited me due to my income and the fact I'm a student and couldn't go out and get a $100k loan. Every few months I got some units in a new sector until I had 5 funds.

    Personally I don't invest in direct shares as I don't have time and I don't think I'm experienced enough currently although many people successfully invest in a direct share portfolio.

    If you are investing in multiple funds there are sites such as pida.com.au that will track your portfolio, I find this very useful.