Managed Investment Funds

[Art Corvelay]

Hi All,

Are managed investment funds any good? I was looking at depositing a small amount into a Colonial Managed Investment Fund, and then adding to that amount every month via a savings plan.

Is this a good idea, or am I better off just leaving the money in an ING Account and enjoying the interest? I suppose there is less risk in the ING Account.

The one I was looking at was the Colonial Global Resource Fund. By the way, this was meant to be very generic, as I will be doing some more of my own research, just wanted to garner a few other people opinions as well

Thanks

 

[Hamburger]

Hi All,

Are managed investment funds any good? I was looking at depositing a small amount into a Colonial Managed Investment Fund, and then adding to that amount every month via a savings plan.

Is this a good idea, or am I better off just leaving the money in an ING Account and enjoying the interest? I suppose there is less risk in the ING Account.

The one I was looking at was the Colonial Global Resource Fund. By the way, this was meant to be very generic, as I will be doing some more of my own research, just wanted to garner a few other people opinions as well

Thanks

There is no general answer to the question. Before investing any money you need to consider the following.
1. The majority of investment funds have no guarantees. After a specified period of time you might draw out your funds and find...you have more than you invested, you have about the same, or you have less.
2. The performance of funds varies widely and depends on many factors, such as... general state of the financial markets, the quality of the managers and the risk strategies followed by the funds ie...where do they put the money. Most fund managers diverify between investment targets that are high, low and medium risk. low risk investments typically give the lowest rates of return, high risk investments have to offer higher rates of return to attract money, but your chances of a loss are also higher.
3. Many funds charge different fees and many of them have several kinds of fees that might apply...including fees that may be charged if you wish to withdraw funds after a certain time. Sometimes these fees can be significant.

So it really depends on the level of risk you are prepared to take. Do some more reading and talk to more than one financial advisor. If you get independent advice it can be expensive and for a small amount it may not be justified. however, every fund will provide you with an advisor who will give you advice for free, but bear in mind they are selling their products. The answers you get will depend on the questions you ask.

 

[Shinboners]

Go to www.vanguard.com.au and have a read.

 

[year of the roo]

I would recommend a managed investment if you are not confident of investing in the stock market yourself. It allows you to diversify easily and the fees that you pay are making sure an expert handles your investment for you.

Also, get out of ING. BankWest has an interest rate of 6% which is much better than ING's 5.4%. You will find them at www.abetterdeal.com.au

 

[R00StaR]

Id take a look at Navrainvest . Invests in blues and only charges fees if they outperform the index. Returned 22.4% last year.

 

[Frodo]

Id take a look at Navrainvest . Invests in blues and only charges fees if they outperform the index. Returned 22.4% last year.

lost heaps as a concern and is going to the market.

Not for me.

 

[Frodo]

Go to www.vanguard.com.au and have a read.

good site and some decent products

 

[knights_hogg]

I'd say investing into some managed funds is a good idea, however, you need to consider if you want a long term or short term investment, and also the risk level. So looking at past performances of different funds is helpful.
One good thing i find with managed funds is that you can invest your money into more than one fund. And, i believe the majority of fund managers allow the investor to swith between funds (if you arent happy with the results). Also, remember the rule - "never keep your eggs in one basket".

da_ilks, as you mentioned, it's a good idea to have some type of saving plans (on a monthly basis).
You can go to a financial adviser, however, be aware of the fees. Most financial advisers will charge an on-going fee for their service, and can be quite expensive.
If you want a (free) advisor best to try a bank they offer a free service, though, note the on going fee.

 

[Frodo]

I wouldn't take advice from a bank if they paid me for it.

I think the wholesale funds can be okay if you have limited time to manage your own investments, but most need around $500K entry.
The retail funds tend to have more significant costs attached, and strings.

 

[knights_hogg]

"I wouldn't take advice from a bank if they paid me for it."


lol@that. Of course you wont take advice from them - but it's free. You just have to consider your options....and do some research.

I am not too keen on retail funds - i dont think they are performing too well.

Some managed funds dont ask for a large amount of money to start off with, Colonial Choice is pretty good. Or you can try friendly society funds like IOOF. lol