Hi I was hoping to get some insight on forum users with experience in Property Investing Vs Managed Funds. I have been looking into IP for some time now and my partner and I have finally paid off all debt and are now saving for our first IP. However, I have also been keen on Managed Funds. Going by stats from Money Magazine Best of the Best ’08 I have taken the then current interest rates since inception for the following selected funds and calculated a $5oo deposit into each per month, compounded monthly for a period of 20 years. The following is the result:
BT Aust Shares @ 15.74% with $5,000 deposit = $945,763
BT Small Companies @ 14.47% with %5,000 deposit = $783,542
Colonial Global @ 17.82% with $1,000 deposit = $1,158,668
MLC Horizon 4 Balanced @ 9.62% with $5,000 = $395,474
Hunter Value Growth @ 20.13% with $10,000 = $2,127,528
Total over 20 years = $5,410,075
Now this naturally does not include funds costs nor inflation and capital gains tax but the figures don’t seem too shy at all. I do understand that there will naturally be differences in the overall result due to interest changes over the years, but spreading the load across a few funds over 20 years should return something similar. In theory anyhow.
Anyone have any experience with managed funds and the reality of such forecasting? Opinions welcome. I am 30 and also invest 5% of my salary into Super.
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