Help on index company shares - Aussie Stock Forums

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  1. #1

    Cool Help on index company shares

    new to share trading, new to aussie stock forums, new to all of it! Have tried the search options but dont think I am searching for the right thing. I am interested in buying some shares, I read in the local newspaper about company's that invest in blue chip aussie share's and thought that in the long term would be better to buy some shares each pay rather than all my savings being in the bank ( dividends/franking credits ). I am searching for these company's to put some of my savings into every pay, believe they are tied up with index's??? Does anyone know what I am talking about???

  2. #2
    Can be found on the bid Trembling Hand's Avatar
    Join Date
    Jun 2007

    Default Re: help on index company shares

    Quote Originally Posted by ofishl1 View Post
    Does anyone know what I am talking about???
    I guess that is a big NO.

    Want to have another go?
    Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? -Hunter S. Thompson

  3. #3

  4. #4

    Default Re: Help on index company shares

    Thanks for your reply, have found a couple, SFY as you suggested, and AFI. I am after the longterm investment, still trying to find my way around forums. Is there a place, thread, forum where I can learn more about how to use aussie stock forums? Whats a thread? post? have got a handle on "reply" I think

  5. #5

    Default Re: Help on index company shares

    ASX Exchange traded funds:

    You could also look at Vanguard Managed Fund.
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  6. #6
    johenmo's Avatar
    Join Date
    May 2008
    Somewhere #$%^@ cold in winter..

    Default Re: Help on index company shares

    I'm new too but have gone direct into shares. Not that keen on some of the fees of funds. But will consider some funds. More family members have made more money on direct share purchase than funds. I am after some more shares for longer term holding but am waiting until I fell happier about the timing of the purchases. FYI, I am wary of broker recommendations.

    Suggest you have a look at Australian Financial Review and Smart Investor magazine. They list a lot of funds as well as shares and will give you some names. As well as previous posts. Maybe your local library has a good collection of financial magazines.

    The AFR website has some histroical information, But in this market, recent history won't be much of a guide!

    We have held some in the past. If we do it again we will:
    - Try to see what specific shares they are holding and find out about them. Consider what sector they belong to, and if they are australian or overseas. Overseas will vary due to currency. This was an issue when we had investments in a fund in New Zealand and the NZ dollar strengthened!
    - look at who the fund manager is. We had one BT fund that went well and returns dropped when a couple of key people left. Who's running it has quite an influnce, but that is only one man's opinion.
    - research, research and research.
    "My problem is simple. I don't know what I don't know."

  7. #7

    Smile Re: Help on index company shares

    Welcome to the forums ofishl1.

    Whilst you might not know much about what you are doing or investment products, it appears as if your instincts are right as to what you want.

    Basically, you want a managed fund....and you've heard about indexing. So you simply want an managed index fund.....Vanguard is one provider, a costly provider.

    I buy shares directly except for super. My super is all in an index fund. If you can believe it, the management fee is, 0.15% a year. That's indexing.

    With indexing, you literally bet on every horse in the race. While that makes bad gambling, it makes exceptional, long term managed fund investing. Why?

    Counless studies show that up to 90% of professional funds underperform the index over 5 years.........you would be better off in the other 10% but can you pick them....probably not

    Botom line...index funds don't outperform by definition....they don't charge fees to outperform like 'real' fund managers.......they don't promise what most can't deliver

    Good luck
    Big Stocks Don't make Big Stock Moves---Lynch

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