Strategy/Advice needed from investing gurus!

Discussion in 'Share Investing Strategies, Theories & Education' started by Ronan, 15th Oct, 2007.

Join Australia's most dynamic and respected property investment community
  1. Ronan

    Ronan Member

    Joined:
    1st Jul, 2015
    Posts:
    10
    Location:
    Brisbane, QLD
    Hi crc,

    What about a geared fund so I wouldn't have to get a ML at all?
     
  2. Ronan

    Ronan Member

    Joined:
    1st Jul, 2015
    Posts:
    10
    Location:
    Brisbane, QLD
    Is a 2.64% drop a good entry point?

    MAP - do you mean the Maquarie Airports Fund? Where is the best place to track price changes in funds real time?
     
  3. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    12,393
    Location:
    Sydney
    You can't track managed funds in real time - unit prices are usually updated once daily, and made available the following afternoon (eg on Monday around 3pm we'll get an update on Friday's unit prices for CFS funds).

    For shares it is a different matter (MAP is a share listed on the ASX, not a managed fund) ... you can get delayed data from Yahoo: MAP.AX: Summary for MACAIRPORT STAPLED - Yahoo!7 Finance - Share Prices, Charts, News and more and from the ASX. You can usually get real-time trade information from online brokers like Commsec.
     
  4. DaveJ__

    DaveJ__ Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    111
    A '1987 Black Monday' style crash tomorrow would require our ASX200 to drop by something like 1500pts!:eek: Then it might be a GREAT buying opportunity if you have the discipline... I don't think the potential drop tomorrow can be compared to when Rivkin allegedly bought. (but who knows what will happen)

    Interesting times...:cool:
     
  5. BillV

    BillV Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,555
    Location:
    Sydney
    Monday is here
    anyone selling and buying later on?
    Cheers
    Bill
     
  6. bundy1964

    bundy1964 Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    345
    Location:
    Adelaide, SA
    Nope sat on my hands waiting.
     
  7. crc_error

    crc_error The Rule of 72

    Joined:
    1st Jul, 2015
    Posts:
    1,267
    Location:
    Melbourne, VIC
    In the end, you need to be happy with the risk. Reason why I suggested not to gear, is so the dividends paid can help offset your loan interest. Even with a internally geared fund, its less likely to pay dividends, as they use those dividends to fund the internal borrowing. The dividends it does pay is capital gains, so if the market is flat, it wont pay out anything.

    Certainly with gearing, you will get a better result over the long term. The global economy isn't showing signs of slowing down, so you can consider this when making your decision. Just make sure you diversify your holdings on borrowed money to smoothen out fluctuations from sector to sector. And make sure you can afford to hold through times where the market is flat or down and doesn't pay dividends.

    Be careful not to over commit yourself.

    Tom
     
  8. crc_error

    crc_error The Rule of 72

    Joined:
    1st Jul, 2015
    Posts:
    1,267
    Location:
    Melbourne, VIC
    I didn't end up getting into MAP, as the drop wasn't big enough. I want to buy under $4.25. But I did pick up $30,000 worth of LGL and $30,000 worth of ZFX, which today I wrote covered calls against them. Since today is up (as expected) this worked well to get better call premiums today rather than yesterday.

    ZFX is also paying a 70 cent dividend at the end of the month.

    Tom
     
  9. coopranos

    coopranos Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    468
    Location:
    Perth
    Ronan
    Make sure that any moves you make on the investment front are the result of your own conclusions.
    Be very careful who you take advice from. Advice on a public forum is free - it may be extremely valuable or a complete waste of your time.
    Definitely take what has been said under advisement, but there is no substitute for your own education - at least get a bunch of books by respected authors and get some different ideas.
    Then you will be in a better position to determine what is good advice and what advice is questionable.
     
  10. voigtstr

    voigtstr Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    601
    Location:
    Hobart
    4%? Navra conservativly says 10% but returns closer to 20%. CFS have returned higher figures.

    Assume a more conservative 2.5% a quarter. Work out how much money in funds you need to pay for your IP holding costs, plus LOC interest, plus margin loan (if you want even more gearing). Work the numbers out in excell and see if its doable.
     
  11. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    12,393
    Location:
    Sydney
    Yes, but Navra isn't paying dividends - they are paying trading profits ... very different beasts.

    The 4% crc_error referred to was dividends paid out by the shares a managed fund holds. This is the main form of income (other than realised capital gains) that most managed funds pay. Navra is quite different in that regard.

    Unless you are capitalising interest or selling shares/funds to meet expenses, then you will have to rely on the income distributions to cover your costs.

    Navra's high income is good in this regard, but it is not as tax effective as capitalising interest is, although it is arguably safer to take income from Navra than to capitalise (which causes increasing debt).