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The use of navra or other funds in LOE

Discussion in 'Investing Strategies' started by jscott, 12th Apr, 2006.

  1. jscott

    jscott Well-Known Member

    10th Jan, 2006
    Just wondering if there are specific reasons to use the navra funds over and above other managed funds such as the vanguard high income fund in the LOE strategy? i.e. is there tax reasons as I'd think the vangaurd fund (or others) would be better here since it delivers franked dividends?
    Is it to do with volatility - if the market drops the navra funds are more likely to make better returns because of their trading strategy?
    I undestand that Steve would encourage us to use his funds of course, but are there any underlying specific reasons?
  2. TryHard

    TryHard Well-Known Member

    17th Aug, 2005
    Hi jscott

    I confess to knowing nothing about any other funds but here's what I understand are the positives of the navra fund (more knowledgeable can add :) - or subtract for that matter ) :

    1. Low minimum investment
    2. (technically) Able to perform in a rising or falling market due to volatility
    3. Funds readily available (liquid)
    4. Minimal exit fees
    5. Quite conservative in nature (= lowish risk)
    6. Underlying share assets are the 'pick of the pick' - no dodgy or speculative stocks involved
    7. Mainly income focussed so providing regular returns which property investors need to pay interest
    8. You lock in the gains made quarterly (no matter what happens during the rest of the year)
    9. Increased returns available for those with a higher risk profile, through gearing
    10. Some (albeit relatively short) track record
    11. Good reporting online (if you can be bothered to watch daily activity)
    12. Fees are performance-based only
    13. No commissions payable if you invest direct = more of your dollars working in there

    I guess they would be some things to compare to other funds. I must admit I'd like to learn about other funds out there and how they compare also - although at this point the 'set and forget' factor and the quite acceptable returns mean NI is doing the right thing for me :)