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Switching Funds

Discussion in 'Managed Funds & Index Funds' started by Meggsy, 16th Aug, 2007.

  1. Meggsy

    Meggsy Well-Known Member

    Joined:
    15th Feb, 2007
    Posts:
    61
    Location:
    Brisbane, QLD
    I currently have 5 different managed funds:

    Aust Unity Property Securities Growth
    CFS MIF - Geared Share Fund
    CFS MIF - Global Resources Fund
    Goldman Sachs JBWere Emerging Leaders Fund
    Macquarie - Small Companies Growth Trust

    I've invested through a discount broker and I put some money in each month. I've become a little annoyed at Aust Unity in the way that their statements fail to arrive now for my monthly distributions and they have been last twice in a row to arrive at tax time (I still haven’t got the letter from them yet).

    I was thinking about switching the Aust Unity fund over to a CFS property fund. I’m not just saying this because of the recent events/performance of the fund, I have been thinking about it for a while. I also purchased this fund when I first started partly (ok, ok, mainly) on the back of a huge return the other reasons were that I wanted a property fund and also a growth fund. I knew nothing about managed funds and I had to start somewhere :). While I don’t regret my decision now (I have learned from the experience) I will do things again differently next time. I may even swap the others over to a CFS fund too.

    I like to online flexibility of CFS, the way you can add to and view your funds online by BPAY etc. I’m sure now is not really the time to switch as the market has had a correction, but what do you think about the idea in general? Ultimately I’m in managed funds for the long term, however there is no point sticking to the fund with the management issues. How does one weigh up cutting losses vs. holding out for a bit longer to see if things pickup before getting out of the fund.

    What are the implications of swapping; naturally there will be CGT, anything else I might be missing? Is it pretty easy to withdraw your money?

    The other option I’ve thought about is simply stopping my monthly contribution into the fund and using that money elsewhere. We aren’t talking about a substantial amount of money here, $250 a month and a total of about $4000 invested.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Personally I'd just withdraw the money now if you aren't happy where it is ... whether you reinvest it straight away is your call - perhaps wait for signs of a recovery in the market ?

    Either way - I'm pretty fussy about the service I get from companies I deal with ... if they screw me around, I don't want to do business with them.

    ... and I like CFS too :D
     
  3. Meggsy

    Meggsy Well-Known Member

    Joined:
    15th Feb, 2007
    Posts:
    61
    Location:
    Brisbane, QLD
    How ironic, I get home from work today only to find a letter from Australian Unity showing about $1000 in dividends and my statements on what has been invested each month... I'm still going to switch though haha.