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Vanguard lifestrategy growth fund

Discussion in 'Managed Funds & Index Funds' started by Alina, 1st Sep, 2018.

  1. Alina

    Alina New Member

    Joined:
    1st Sep, 2018
    Posts:
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    Location:
    Sydney
    Hi guys,

    I was hoping I could get some advice. I'm new to investing and I have about $20k sitting in a savings account and I'm thinking about investing this money in a managed fund. After conducting research online (googling), it appears that Vanguard LifeStrategy growth fund is not a bad option for a start.

    Also, looking online, I can only see positive things about managed funds. Are there any risks prior to investing in these funds?

    Cheers
     
    twisted strategies likes this.
  2. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
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    Location:
    QLD
    welcome to InvestChat ,


    Vanguard LifeStrategy Funds | Vanguard

    first i might be wrong but the offerings i have found so far seem to be US domiciled , meaning extra possible tax implications for you .

    next you would have to check how easy it is to exit should the fund do less than expected or you suddenly need the cash .

    they ALWAYS look good ( that how the PR people dress it up ) it is your responsibly to dig deep for ugly bits and potential traps

    Vanguard LifeStrategy Moderate Growth Fund (VSMGX)

    Holdings

    Underlying funds as of 07/31/2018

    Rank Fund name Percentage
    1 Vanguard Total Stock Market Index Fund Investor Shares 36.1%
    2 Vanguard Total Bond Market II Index Fund Investor Shares** 27.9%
    3 Vanguard Total International Stock Index Fund Investor Shares 24.1%
    4 Vanguard Total International Bond Index Fund Investor Shares 11.9%
    Total 100.0%
    **Information on this fund can be found on Vanguard's Institutional Investors site.
     
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  3. Hodor

    Hodor Well-Known Member

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    hodor
    Equivalent Australian Vanguard funds are here;

    Investment Products

    Wholesale here (stated $500k requirement, call them up and should let you start with over $100k);

    Investment Products

    IMO the retail funds are too expensive for a long term investor and selling up, incurring taxes and then getting into the wholesale is a big hit too.

    ETFs purchased on the ASX are an option, similar fees to the wholesale funds;

    Investment Products

    ETFs incur brokerage when you buy and sell yet have similar fees to the Wholesale fund. No Bpay option either.

    If you want a simple set and forget option I can't think of an obviously superior product. Complexity doesn't improve returns in general.

    That's my thoughts anyway.
     
  4. Alina

    Alina New Member

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    Hi twisted strategies, I've emailed Vanguard about the tax implications and Vanguard confirmed that the Lifestrategy growth fund is domiciled in Australia and therefore any tax liability would be only relevant to the country(ies) of which the investor is a tax resident. i'll need to research further on how easy it is to exit.

    Thanks again for your help. I'm also looking at ETFs.
     
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  5. Alina

    Alina New Member

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    1st Sep, 2018
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    Location:
    Sydney
    Hi Hodor,

    thanks for your help. I've had a high level chat with a financial planner who also suggested I look at Vanguard's ETFs.. I now need to research on the Vanguard Diversified Growth Index Fund.

    Cheers,
    Alina
     
    twisted strategies likes this.
  6. twisted strategies

    twisted strategies Well-Known Member

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    Location:
    QLD
    Alina ,

    take care

    research has it's rewards

    good luck