Managed funds vs. Direct shares

[Black Dog]

Hi everyone thinking of investing in Managed funds or buying Direct shares myself, which do you think is the best option,trying to make money not lose it.
Black Dog

 

[robusta]

Hi everyone thinking of investing in Managed funds or buying Direct shares myself, which do you think is the best option,trying to make money not lose it.
Black Dog

Have you had a look at any of the Listed Investment Companies? Some of these offer the diversification of a managed fund but at at discount to NTA.

ASX codes to start with are; AFI, ARG, WHF, MLT, PMC, WAM, CAM, SGI...

These guys should offer most things you would find in a managed fund between them but often with a lower management expense ratio.

 

[medicowallet]

Hi everyone thinking of investing in Managed funds or buying Direct shares myself, which do you think is the best option,trying to make money not lose it.
Black Dog

We all have to be careful not to give investment advice here....

I think it all comes down to investment experience, as for some people I know, managed funds are worth the premium, and for others, they can do better than the funds as they have no management fees.

 

[Starcraftmazter]

Hi everyone thinking of investing in Managed funds or buying Direct shares myself, which do you think is the best option,trying to make money not lose it.
Black Dog

Get a dart set, a blindfold and you are more than 50% likely to do better than a managed fund. At least your dart throws will not be biased by the religion of the "efficient market hypothesis" (aka: everyone is as stupid as me) and "modern portfolio theory" (aka herpty derp let's buy a whole lot of everything with zero upside potential unless we're in a credit bubble growth phase and see what happens!). Did I mention their ridiculously high fees which they charge no matter how miserably they fail year after year?


If you do not have the time to do investment yourself, then a term deposit will generate superior returns than 99.99% of managed funds investing in the Australian stock market in the foreseeable future. And the 0.01% that doesn't suck will suck the following year.


Really they rip off so many people so much, yet the performance of the managed funds rarely has anything to do with anything other than how the asx200 performs that year

 

[sunnysyd]

Hi everyone thinking of investing in Managed funds or buying Direct shares myself, which do you think is the best option,trying to make money not lose it.
Black Dog

Investing requires skill. No doubt about it. So the right strategy for you will come down to your experience, tolerance for risk, ability to take on new information and use it for profit etc.
Best to identify your objectives and goals and work out what sort of return you are aiming for and then directing a strategy towards that taking into account your risk profile and time frame.
Good luck.