new to share trading, new to aussie stock forums, new to all of it! Have tried the search options but dont think I am searching for the right thing. I am interested in buying some shares, I read in the local newspaper about company's that invest in blue chip aussie share's and thought that in the long term would be better to buy some shares each pay rather than all my savings being in the bank ( dividends/franking credits ). I am searching for these company's to put some of my savings into every pay, believe they are tied up with index's??? Does anyone know what I am talking about???
Help on index company shares
- Thread starter ofishl1
- Start date
Trembling Hand
Can be found on the bid
- Joined
- 10 June 2007
- Posts
- 8,852
- Reactions
- 204
- Joined
- 22 June 2006
- Posts
- 198
- Reactions
- 0
Thanks for your reply, have found a couple, SFY as you suggested, and AFI. I am after the longterm investment, still trying to find my way around forums. Is there a place, thread, forum where I can learn more about how to use aussie stock forums? Whats a thread? post? have got a handle on "reply" I think 
Julia
In Memoriam
- Joined
- 10 May 2005
- Posts
- 16,986
- Reactions
- 1,973
- Joined
- 21 May 2008
- Posts
- 664
- Reactions
- 14
I'm new too but have gone direct into shares. Not that keen on some of the fees of funds. But will consider some funds. More family members have made more money on direct share purchase than funds. I am after some more shares for longer term holding but am waiting until I fell happier about the timing of the purchases. FYI, I am wary of broker recommendations.
Suggest you have a look at Australian Financial Review and Smart Investor magazine. They list a lot of funds as well as shares and will give you some names. As well as previous posts. Maybe your local library has a good collection of financial magazines.
The AFR website has some histroical information, But in this market, recent history won't be much of a guide!
We have held some in the past. If we do it again we will:
- Try to see what specific shares they are holding and find out about them. Consider what sector they belong to, and if they are australian or overseas. Overseas will vary due to currency. This was an issue when we had investments in a fund in New Zealand and the NZ dollar strengthened!
- look at who the fund manager is. We had one BT fund that went well and returns dropped when a couple of key people left. Who's running it has quite an influnce, but that is only one man's opinion.
- research, research and research.
Suggest you have a look at Australian Financial Review and Smart Investor magazine. They list a lot of funds as well as shares and will give you some names. As well as previous posts. Maybe your local library has a good collection of financial magazines.
The AFR website has some histroical information, But in this market, recent history won't be much of a guide!
We have held some in the past. If we do it again we will:
- Try to see what specific shares they are holding and find out about them. Consider what sector they belong to, and if they are australian or overseas. Overseas will vary due to currency. This was an issue when we had investments in a fund in New Zealand and the NZ dollar strengthened!
- look at who the fund manager is. We had one BT fund that went well and returns dropped when a couple of key people left. Who's running it has quite an influnce, but that is only one man's opinion.
- research, research and research.
- Joined
- 8 September 2007
- Posts
- 376
- Reactions
- 0
Welcome to the forums ofishl1.
Whilst you might not know much about what you are doing or investment products, it appears as if your instincts are right as to what you want.
Basically, you want a managed fund....and you've heard about indexing. So you simply want an managed index fund.....Vanguard is one provider, a costly provider.
I buy shares directly except for super. My super is all in an index fund. If you can believe it, the management fee is, 0.15% a year. That's indexing.
With indexing, you literally bet on every horse in the race. While that makes bad gambling, it makes exceptional, long term managed fund investing. Why?
Counless studies show that up to 90% of professional funds underperform the index over 5 years.........you would be better off in the other 10% but can you pick them....probably not
Botom line...index funds don't outperform by definition....they don't charge fees to outperform like 'real' fund managers.......they don't promise what most can't deliver
Good luck
Whilst you might not know much about what you are doing or investment products, it appears as if your instincts are right as to what you want.
Basically, you want a managed fund....and you've heard about indexing. So you simply want an managed index fund.....Vanguard is one provider, a costly provider.
I buy shares directly except for super. My super is all in an index fund. If you can believe it, the management fee is, 0.15% a year. That's indexing.
With indexing, you literally bet on every horse in the race. While that makes bad gambling, it makes exceptional, long term managed fund investing. Why?
Counless studies show that up to 90% of professional funds underperform the index over 5 years.........you would be better off in the other 10% but can you pick them....probably not
Botom line...index funds don't outperform by definition....they don't charge fees to outperform like 'real' fund managers.......they don't promise what most can't deliver
Good luck
