Starting Off - High Risk Managed Funds

[Insan3]

Hi all, have spent some time reading and searching but can't find much about what I want.

My partner and I are selling our house and building a new one, but we will have some extra cash, so I can finally get into Investing.

I'm considering putting $15,000 into a Managed Fund - something like Platinum's Euro or Asia fund and keeping it there for the next 5 years. Then aiming to realise 15%pa increases over this period.

Is this overly risky, or are there other things I should be looking towards??

Thanks for your help,
Matthew

 

[Judd]

Consider the newly listed iShares.

http://www.asx.com.au/investor/lmi/ishares.htm

Lower cost than unlisted managed funds.

Probably take awhile to be accepted in Oz but then so did the EFTs of StreetTracks

 

[Rastan]

Please note - I am an absolute novice so I am offering this for clarification myself rather than as advice - since I am coming into a similar situation I thought a more 'high risk' investment would be to use that sort of capital in leveraged instruments (e.g. CFDs, options) using a well defined risk managed strategy?

What I am saying is that I am coming into 10K which want to use in a relatively high risk way to see what I can 'make it into' rather than get a 'steady' 15% pa. The steady 15% will give me a little over 3K in 2 years (minus tax), which quite frankly doesnt excite me at all. I would rather take on a lot more risk as long as I can only lose the original 10K (is that what a stop loss is for?).

 

[krisbarry]

Use this company: Invest Smart

This allows you to gain access to a wide range of managed funds and save the 4% entry fees

www.investsmart.com.au

 

[IOT]

Hello,

I am also considering joining a managed fund..this site looks rather useful..almost too good to be true!!

what are people's thoughts on the different types of funds (property, small business, stocks etc) and things like global market vs aussie market?

I currently have far too much tied up in spec stocks and want to acquire something more stable for long term growth...

I'm also a bit hesitant to jump in while the market is at these new highs..but can't hold off forever it might keep going up!

 

[Flying Fish]

Interesting link thx

 

[Julia]

Hello,


I currently have far too much tied up in spec stocks and want to acquire something more stable for long term growth...

I'm not sure why you feel the only alternative to spec stocks is managed funds? Have you considered some stable blue chip Australian stocks?
Then you remain in control and don't pay fees to some anonymous fund manager who frequently fails to match the index.

 

[IOT]

yes I have considered buying some bluechips myself but fear with the money I want to start with - (probably 30-50K) I would not be able to get exposure to enough companies buying them myself. A managed fund would provide more of a spread across companies...

I also like the idea of making my own decisions on specs and feeling safe knowing I have money in a fund somewhere which is being looked after by a (supposed) professional in case I blow all the specs