Hi, has anyone got an opinion on CommSec's Managed Funds? https://funds.comsec.com.au/ (via https://www.comsec.com.au/). The website doesn't seem very helpful. I'm also interested in any recommendations of other managed funds.
I'm looking to make a substantial 2 or 3 year investment that's less risky than trading shares directly myself, but still can be reasonably expected to beat the returns of a savings account (which is my other option).
Thanks in advance!
I would never recommend investing in managed funds. When you take their fees into account you rarely make more than investing in cash and its more risky. I would invest in an index fund too if I were you especially as its such a short term investment
Thanks for the advice. I had a look at the past performance of VAS over the last couple of years - it's clear that it hasn't beaten the performance of a humble savings account. No such thing as a free lunch (without risk) I suppose…
1) past performance isn't an indicator of future performance
2) the returns you are looking at probably don't include the most recent 6 or 12 month period. This has been an exceptionally well performing period and it could possibly put these shares well ahead of cash.
3) +1, steer clear of managed funds. Personally I'm in IVV (US Blue chips), STW (Aussie blue chips) and VEU (global non-USA blue chips eg nestle)
1) Yes, I know - I was referring to the "riskiness" of VAS, which I think can be estimated from its past performance.
2) I was referring to the period 2010 - 2013, which had roughly zero return. Neither of us know whether it will go up or down in future.
VAS is an fund invested in 100% Australian Shares
I also recommend VAS. Good fund overall.
Almost everyone here has mentioned funds that are share based.
Looking at what you posted originally it appears you may not have that big of an appetite for risk.
Look at this https://funds.comsec.com.au/Public/DirectFunds/MyInvestorPro…
You should also look at the "Choosing Funds" option on this page
https://funds.comsec.com.au/Public/DirectFunds/LearnAboutFun…
Go back to the ASX Page - Click ETP's and look at ones in this section
Cash & Fixed Income Exposure
You may find the best thing to do from a risk appetite is to actually mix the funds, say part Cash & Fixed Income Exposure and Part Shares.
Thanks a lot, I'll look into those resources and let you know if I have further questions :)
Have you looked into investing into Property Funds like the APN AREIT
http://www.apngroup.com.au/apn/funds/fund/?apnid=712387b7-dc…
No, but I will, thanks :-)
So here is the latest plan I'm toying with, splitting my capital in quarters:
* 25% in a savings account
* 25% in STW or VAS (diversified aussie shares)
* 25% in a diversified property trust (not sure which one….)
* 25% in something else, perhaps a Listed Investment Company (LIC) or Listed Investment Trust (LIT) with diversified international shares
What do you punters reckon of that? :-)
I did a lot of research a year ago when investing $20k. Similiar horizon - didn't need to access for at least 2-3 years.
I ended up putting most of it in STW - it has the benefits mentioned above - basically management expense ratio of .2% vs 2% for a managed fund that usually fail to beat the market after fees.
If I was in the position now - I'd do the same thing - except I might consider VAS as I understant they recently dropped their management expense ratio to .15%. You will need to check if this is still the case. There is a bigger buy/sell spread on VAS over STW due to less volume - however the lower fees made up for this in my last calculations.
I'm not sure why you'd try and "diversify" between LICs, savings accounts, etc. The index funds are already diversified. Put all you money in the one that is going to give you the best net return. That is if you don't need the money for the next 3-5 years.
My opinons only - not financial advice
I would suggest looking for an index fund. This is a fund where the managers buy shares in roughly the same proportions as the entire stock market, so that the fund's performance is very close to the index. Most actively managed funds underperform the index after you take fees into account.
Always check what the MER (management expense ratio) is, this is how much the fund is skimming off you as the cost of investing your money. Index funds tend to charge around 0.2-0.4%, while managed funds can be 1-3%
Glancing at the commsec funds, they look quite high cost. The ETPs on this page may be better
http://www.asx.com.au/products/managed-funds-product-list.ht…
These are exchange-traded funds. That means you can buy them using any share-trading platform such as commsec, you just have to know their stock ticker.
I personally own shares in the SPDR 200 Fund (code STW) but the Vanguard Australian Shares Index (VAS) looks like a better deal.