I’m with LifeX!
Go the whole job or risk loosing it all.
Attack the statement, NOT the person! Send each other PMs if you want to do that, leave us out of it!
[offtopic]
Cheers
C@34
Hi Stargazer,
Check out http://www.vanguard.com.au. Not sure how big they are in Oz but in the states, they are huge. Look up index investing in google to get a feel. Essentially investing in these is simple and based on premise that funds managers do not outperform index in long term – I’m talking 5-10 years plus and even if they do, not by huge returns. Might be able to do it for a couple of years in a bull market but very hard to consistently pull it off. If you can find one, let me know. A simple investment is look up stock code STW – you’re buying the ASX 200, pays franked dividends also. Think their website is streettracks.com.au. Price just tracks the ASX 200 which is benchmark for most fund managers. Then you’ll get share type returns in the medium to long term like you read in the papers cos thats where they get their performances from – these indexes. From 99-03, share market pretty much flat but from end of 03-05, its pretty much delivered an annualised return over those 5 years consistent with equities long run averages. If you think you can out smart the market by picking sectors, stocks…etc.. go for it. Else, go index and put it in the bottom drawer. Boring I know but horses for courses.
Good luck
Originally posted by stargazer:Excuse my ignorance but how do you invest in the index fund.
Find a fund manager, read their prospectus, send money!
What sort of returns can one expect med to long term.7 to 9% above inflation in the long term.
How much is a minimum investment.Usually 2k, 5k or 10k depending on the fund you choose. Sometimes there is also a minimum monthly investment.
Would investing in the index fund be a good retirement strategy.I cannot give specific financial advice. It depends on your risk tolerance and your investment timeframe. 5 years would be an absolute minimum and 10 recommended. Such an investment vehicle requires a cool head, good returns are achieved by ‘dollar cost averaging’ and best returns are achieved with a ‘loss plus’ strategy. Either way, it’s not a case of investing all your savings and forgetting about it, the investment should be built over a period of time.
Hope this helps.
F.[cap]
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