Hi there,
I am a 19 year old New Zealander who has just started my own company. I am about to apply for around $30k NZD for business funding, but I am wanting to put $10k into a managed fund that can ideally pay for, and theoretically “cancel” out, the $30k’s monthly repayment as well as hopefully make some income that can be re-invested or go into the business. I am well aware that all investment carries risk and I am willing to take on a large risk in order to get the returns that I am wanting. I am young and do have what it takes to bounce back if it did all turn on me.
Now I am needing some advice on an appropriate managed fund to get into. I will do further research, but if someone could please point me in the right direction then that’d be much appreciated. Eventually I do plan to invest in property for myself, but as the company is taking up a lot of my time, I will be doing this later on in the year, but for now I am just wanting a managed fund. I am willing to use a managed fund in Australia or abroad if it offers better returns than NZ, which I’m assuming it will.
Thanks,Tim.
Gday
This guy is a friend of mine who really is very good. He’s not popular among some of his peers who are comission based though
Some time ago he made this powerpoint presentation available from his website.
http://www.travismorien.com/investment.ppt
It should provide some help..
EZ-Rent. The free tax and cashflow simulator for Australian property investors. Version 2 out now!
http://www.ez-rent.com
Thanks ez-rent. Thats helpful. However, where can I find out more about specific managed funds and their providers? How can I find out which specific one is best suited for my needs and where to start investing in it?I am wanting to put $10k into a managed fund that can ideally pay for, and theoretically “cancel” out, the $30k’s monthly repayment as well as hopefully make some income that can be re-invested or go into the business.…so – you’re looking for a managed fund that will consistently return over 34%* annually over a long term. This is not realistic.
Cheers, F.[cowboy2]*based on a 7.5% business loan over 15 years
My main aim in this is that even if the returns don’t “cancel out” my loan repayments, its still going to minimise those repayments, which is going to allow me to borrow more. Having that borrowing ability is going to allow me to get into the property market as well as run my business which is something that most 19 year olds haven’t even thought of. So while ideally, I’d be able to pay the whole loan repayment off – realistically, I’m wanting to minimise it and also prepare for the future.
Thanks. Any more advice and places to search through managed funds would be appreciated!Ok, that’s a more sensible take on things. Check out http://www.morningstar.com.au for managed fund ratings.
Cheers, F.[cowboy2]
Hey thanks foundation. I’ll look into that
Hi tim, not trying to be smart cookie here, nor you need to listen to me, as i am still trying to find my feet here as well.
what i think would be better is learn and study the subject of investing itself, for ex: share market. when to get in, get out, p/e ratio, etc.
And maybe start a little team/circle which you can discuss this, and take on the investing yourself. this will provide a better return on the managed funds, of course this will be more risky, but that is why you need to know what you are doing, otherwise, just leave it to the pro.
if you follow the small correction recently on the australia share market, you should be able gain something already from there. but i might be wrong here.
There is a lot of road to one destination, different path taken with different risk, and hence the time taken as well.
Cheers
Hey thanks learning guy. In an ideal situation, that’s exactly what I would do. For the last two years or so, I have been reading up and going to seminars about investing – property, options, sharemarket investing. Obviously I still do not know too much about it all yet, but my understanding is that is does take dedicated time to manage them. Due to the business taking up a large chunk of my time, I am looking for something that produces good returns yet does not require the huge time effort from myself which I just cannot afford to invest that time at the moment. In 6 months time, then yes, I do hope to get into investing for myself, but just for the meantime, I’m thinking a managed fund could do the job well. I could look into some sort of partnership with some friends – e.g. I put up some funding for a friend to work at it full time – but even then this is risky as they wouldn’t really know what they were doing and since I’d be using borrowed funds, this could turn pretty easily. I do know that all investing has risks, but this seems a bit too risky as the potential returns may not be too high even at the best of times. I’ll look into it though.
In the meantime though, if I can find a managed fund with relatively high returns, e.g. better than keeping it in the bank, then I’d be happy. Thanks for your help Learning Guy. If anybody does have more info or advice on the subject, please fill me in.
Thanks!
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