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International vs Australian Share Funds

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  • International vs Australian Share Funds

    What are the pros and cons of each?

    Australian shares over the last 5 years have shown much better returns that both NZ and world shares. I'm undecided on the following 2 funds.

    World


    Australian
    "You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right"

  • #2
    Why are you asking a share fund question on a property forum, you should be investing in property

    Why have you choosen the Rabo ones. Why not go direct to ING (probably no different).
    How does morning starrate them.
    Are they active or index funds and do you now the difference between the two.
    Have you considered exchange traded funds - ie OZY or WIN on the NZ stock exchange - www.nzx.com
    What is your investing timeframe. (ie do you want to pull out in 1 year to purchase a property or is it long term.)

    Comment


    • #3
      Why have you choosen the Rabo ones.

      I can enter them $250 at a time as opposed to $400. The entry fees are lower and the on-going management fees are lower.

      It's weird, because I thought going through ING would be cheaper, but it's more expensive going through ING as opposed to Rabo.

      How does morning starrate them.


      On the ING website, they are 4 stars for the Inernational and 5 stars for the Australian.

      Are they active or index funds and do you now the difference between the two.

      They invest in companies and try to out-perform the index, buy mainly big companies from the information I gather.

      Have you considered exchange traded funds - ie OZY or WIN on the NZ stock exchange - www.nzx.com

      Yes, I have thought about them for several years, but they are not what I'm looking for now, also their returns are pretty low compared to these ING ones.

      What is your investing timeframe.

      I have a student loan which I hope to pay off, $30k. But I figure why not just invest in here and see how the returns go. My time-frame is either 2 years if the investment goes well. I'll sell these off to pay off the student loan in a lump sum. Or 7+ years if they dont' go so well for the next 2 years. Basically, my time frame can depend on how well the investment goes.
      "You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right"

      Comment


      • #4
        Although smart ozzy (OZY) has done pretty well over the last few years, I'm not entirely sure about it, because it's an exchange traded fund, it's very dependent on people buying and selling it as opposed to a professional manager buying and selling numerous stocks.

        I'm just not too hot on exchange traded funds, sure they have low fees (0.75%) but it's quite dependent on people buying and selling...

        Or no?
        "You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right"

        Comment


        • #5
          Just done my research and managed funds can be traded once per day, so not multiple times like an ETF which is basically like a company stock.

          ETF's pay out dividends in cash, managed funds re-invest for you so much easier, plus you don't havr to find a broker.
          "You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right"

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          • #6
            It is hihgly unlikely the EFT would be traded during the day, in NZ atleast because there isn't enough liquidity.

            Re buyers and sellers, if the discount gets to great, the EFT can be wound up at very little cost. They normally track pretty close to the NTA though liquidity is an issue (sometimes this creates buying opportunities - i have got around to selling yet.)

            Comment


            • #7
              Your plan sounds fine. I did a similar thing when I was back at uni. As long as you know the risks involved.

              Comment


              • #8
                ENP,

                Have a look at Fisher Funds Australian Growth Fund: http://www.fisherfunds.co.nz/australian-growth-fund.asp

                Zero entry and exit fee's if you contact them directly.

                We have just cashed in a portion of ours that were showing a 27% pa growth...banked the profit, hopefully the rest can perform as well.

                All the best
                Premium Villa Holidays in Turkey

                Comment


                • #9
                  join comsec and use their research tools to help you choose.
                  you can rank the funds by any criteria you like, eg. 1yr 3yr 5 yr since inception return, risk, ratings, costs etc etc...very handy and quite enlightening to some of the many thousands of funds available in oz.

                  Comment


                  • #10
                    For example...

                    CFS FC Inv-CFS Geared Share is a 4 star fund with morning star and had an 87% return over 1 yr. -7% for the rolling 3 years and 8.61% pa for the 5 years.

                    Comment


                    • #11
                      on the other hand the Challenger China Share Fund had a 16.81% pa return over the last 5 years. with 24.85 last year.

                      It's not rated with morning star however.

                      There is a lot to choose from.

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