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which fund if you had a mil to invest

Discussion in 'Managed Funds & Index Funds' started by handyandy, 5th Nov, 2006.

  1. handyandy

    handyandy Well-Known Member

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    Hi All

    Thought I would throw this out to the greater community and collect views on how people would invest a million dollars in managed funds and/or LIC's.

    The million dollars is not required for at least 3 years so its a matter of trying to maximise the return on the funds. The interest costs for the mil will be carried but no further interest costs will be entertained.

    My thinking is to diversify the investment across a range of managed funds to ensure most of the investment options are covered.

    At this point I have a list as follows

    Aust Unity Property Securities Growth Personal Investment Direct Access
    Smallco Investment Fund Personal Investment Direct Access
    CFS MIF - Geared Share Fund Personal Investment Direct Access
    CFS FC Inv - CFS Geared Share Personal Investment Direct Access
    Ganes Focused Value Fund InvestSMART.com.au - Fund Details
    Selector Australian Equities Fund InvestSMART.com.au - Fund Details
    Pengana Emerging Companies Fund Personal Investment Direct Access
    Challenger China Share Fund Personal Investment Direct Access
    Perpetual WFI Perpetual's Geared Australian - hardly any income but very good growth over the last 5 years. Need to investigate why last 6 month fund has been down. Personal Investment Direct Access

    with the PDS's hopefully posted next week.

    Some of these funds are very small and I have not as yet weighted these funds for risk/reward.

    Cheers
     
    Last edited by a moderator: 6th Nov, 2006
  2. Glebe

    Glebe Well-Known Member

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  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    First of all - only go wholesale - you'll potentially save a lot in management fees.

    Some suggested funds to add to you research list:

    Platinum Asia
    Platinum International Brands
    Platinum European
    CFS WS Property Securities
    CFS WS Small Companies - Core
     
  4. handyandy

    handyandy Well-Known Member

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    My criteria is solid sizeable preformance over the periods. On the % criteria the Platinum funds did not come up.

    Also, I am already in Platinum and as my idea is diversification left them of. But they may still be a top up candidate.

    Apart from the 'wholesale funds' not coming up in the searches I have been doing they have rather high minimum invests. I will check out why wholesale aren't shown.

    Re fees, my intention would be to use investsmart who rebate all entry fees and all bar $385 of trailing comms.

    Overall my aim would be to double my investment over 2-3 years, which is why I am concentrating on the high % earning funds.

    Cheers
     
  5. gazza

    gazza Well-Known Member

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    Handyandy

    Just wondering whether the million is borrowed ie LOC and/or margin loan or cash and whether that makes a difference in terms of your selection criteria?

    Gazza
     
  6. handyandy

    handyandy Well-Known Member

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    Lets say it's cash, which does make a difference as you don't have to worry about any interest payments. Be it that I still take the cost of money into any cals re returns.

    Cheers
     
  7. gazza

    gazza Well-Known Member

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    I guess from my perspective if it was cash I would be prepared to 'risk' more ie. seek funds with a more speculative nature whereas if the money was borrowed I would be looking to obviously get the best return possible but would also be looking for protection of capital.

    I am in this sort of position ie all borrowed (loc+margin loan) and am invested in mainly one fund (guess which one) although I do have money invested in a couple of Macquarie capital protected funds. I am currently investigating diversifying so I am very interested in one fund alternatives people are looking at and why.
     
  8. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    My diversification strategy is mostly along geographical lines - I've chosen funds that typically invest across multiple sectors within a defined geographic area.

    There are some exceptions - I have put a small amount into resources and some more into listed property (mostly because I didn't have much exposure to listed property through my other investmets).
     
  9. perky

    perky Well-Known Member

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    Andreas,
    What about Macquarie Property Income Fund ? InvestSMART.com.au - Fund Details

    Returns have been good up until end of September , as you know Peter Spann liked that one.

    The Platinum Asia fund is now showing good returns - my funds are finally back to where they were in May :rolleyes:
     
  10. seaview

    seaview Well-Known Member

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    HI

    Hello everyone,
    Am currently researching a similar investment spread across several funds - though only about 500k (yes, margined up with modest LVR). Your fund list and suggestions are fairly similar to mine, though I added some overseas LPTs such as CFS Colliers and RREEF Global Property Funds, I am also using CFS wholesale, but wonder if Macquarie has a whole sale discount as I like a few of their funds too.(Property Income Fund and Small companies).

    One big problem I am trying to solve is which funds are most tax effective. The Morningstar research is not available to us yet - I think.
    As a newbie to funds I am still trying to work out what is the difference between unrealized and realized capital gain (which one do I pay at the end of the year in my Tax Return and which one is deferred/already paid ??). This has a big bearing on yield and growth in the end, especially for me as I have lots of negative gearing from property to offset any fund income, but not much capital loss.
    Also, a burning question my friends and I are debating is whether unpaid capitalized interest on margin loan can be claimed as a deduction now. I have heard conflicting views on several forums about this. Does anyone know for sure?
    It is all rather exciting - even if the market dumps or if the funds only grow at a fifth of their past performance rates, there should still be some good growth over a few years. This will make up for the lack of growth in our Navra funds (which we use to pay our neg. gearing).
    I have waited many months now to dive in and buy some more funds, thinking the market would dump, but in hindsight, looking at fund performances, I may as well not have waited.
    Is anyone wary of buying Global Resources with predictions that BHP and others will fall 30 % in the next year ?
    Cheers
    Carol
     
  11. jscott

    jscott Well-Known Member

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    3 years! That is a very short time-frame for share investments unless your purely speculating I would think. What if the market drops 30% at the end of year 3? If you need all that money baack in 3 years I would defintely be looking to put a sizable portion into cash/fixed-interest/mortgages, etc, unless you have a very high risk tolerance.
     
  12. moonbeamzz

    moonbeamzz Member

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    Wow, some great info - really helps shortcut the research process. Can anybody suggest income distribution funds similiar to the Navra Funds (am already fairly heavily into the Retail fund). Looking for an income fund to build up as a diversification process but keep getting lost in the sheer volume of managed funds out there. Cheers :)
     
  13. MrDarcy

    MrDarcy Well-Known Member

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    Of course I don't know for sure, but I've doing doing that for years ! But I am sure I'm not alone there. Try searching the forum for capitalised interest.
     
  14. Redwing

    Redwing Well-Known Member

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    Thanks..

    Some great Funds to look at for further research there.

    I've only tested the waters so far with NAVRA and invested an amount from a LOC (at 7% Interest) if the NAVRA Fund can pay back the LOC as well as provide funds to assist in servicing debt on a Property or two then its serving its purpose.

    My next step is to look at leveraging into Navra and possibly another Fund via Margin as well and the above information has given some food for thought as I'm wondering how to best use "Lazy Equity" :confused:
     
  15. NickM

    NickM Co-founder Staff Member

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    All good info guys. I am currently looking at Perpetuals Wholesale Industrial Fund, Tyndall Aust Share Portfolio - both solid performers.
    An income fund that may compare with Navra is Naos Absolute Return Fund.23.22 % over 12 mths. Small in size - commenced Jan 05