Fund Managers or DIY? - Aussie Stock Forums

Results 1 to 7 of 7
  1. #1

    Default Fund Managers or DIY?

    Hi there punters,

    I bought into fund managers some time ago with the help of a financial advisor and have added more since then. I now have about nine in a diversified portfolio.

    I am learning more about how to invest and i am considering D.I.Y. on a small scale until i know more about it.

    I have sacked my current financial advisor as he is telling me to hold on for the long term anyway. I can't see any sense in paying lots of money for him when the fund managers and a multimanager are doing the work. I have eliminated the middle man and I am able to basically manage my investment without him.

    I am considering taking my recent action further and investing in shares directly without fund managers and financial advisors taking a big slice of the action. However I am not experienced or knowledgeable enough yet to manage my investments completely on my own without any fund managers.

    Does anyone have any thoughts regarding using fund managers or directly investing in the stock market?

  2. #2
    Mod: Call me Dendrobranchiata prawn_86's Avatar
    Join Date
    May 2007
    Los Angeles
    Blog Entries

    Default Re: Fund Managers or D.I.Y.?

    Quote Originally Posted by light bearer View Post
    Does anyone have any thoughts regarding using fund managers or directly investing in the stock market?
    Im in a rush so cant go into detail, but i think you will find that virtually everyone here invests directly, most directly into shares, but some also own funds.

    Most of the research suggests that, on average, over the long term fund managers do not better than the index (at best), so there is a fair arguement for just buying an index fund...

    Although i want a job as a fund manager eventually so perhaps you should keep them

  3. #3

    Default Re: Fund Managers or DIY?

    DIY all the way! The only fund I would consider investing in is Platinum International.

  4. #4

    Default Re: Fund Managers or DIY?

    Thanks for sharing I am trying out the "Can you Beat Trevor" stock market game from Westpac. I might win $25,000.

  5. #5

    Default Re: Fund Managers or DIY?


    You have worked hard for your money (i assume), why place it into the hands of someone who couldn't care less about it.

    Im pretty sure a fund manager wouldn't lose sleep over your money.

    You earnt it, you have the right to lose it yourself

    Seriously though, look at all the top traders of the world. How many of those guys got there from putting their money into the hands of fund managers


  6. #6

    Default Re: Fund Managers or DIY?

    Your situation sounds very similar to mine about 18 months ago. I was with a scum bag FA who made all the promises of bi annual reviews and a helping hand ra ra ra.
    Let me guess, you were paying 2 to 4% in upfront contribution fee's, 1 to 2% in management expense ratio's and he has probably also talked you into a margin loan where he is also getting a kick back.

    You did the right thing in firing his ass. You can get better results over a five year period from an Australian index fund such as STW. and save yourself a small fortune in fee's.

    Active managed funds like the ones you are most likely in also buy and sell all year long which puts you in a pickle when it comes to tax time.

    If you look at the make up of most of your Aussie funds they most likely hug the bench mark anyway, I. E the top 20 stocks are the top 20 in the index. Why would you pay all the fees to hug the index?

    There are various threads on the subject that helped me on this forum. If you don't have the time to school up just buy the index!

    Best of Luck


    "If you not on the inside your on the outside"

  7. #7
    The Contrarian Averager So_Cynical's Avatar
    Join Date
    Aug 2007
    Sydney - Muntinlupa

    Default Re: Fund Managers or DIY?

    Fund managers or DIY?

    I found this funds management mob last nite.



    In a nut shell they sold out of the market in early OCT and are mostly in
    cash, this came about after significant losses....so there happy as fund
    managers to be in cash and therefore not actually managing anything.

    Pretty strange...a property investment fund that don't own any property
    shares, there return after 8 months in cash is 2.43%

    Statistics: 172 Closed Trades since July 07, Trades: Winners 135 - Losers 37, Expectancy/$1 Risked: $0.78

Similar Threads

  1. Fund managers in Sydney
    By Naked shorts in forum Trading/Investing Resources
    Replies: 8
    Last Post: 11th-March-2009, 09:44 AM
  2. Have investment fund managers been ethical?
    By McGoldrick in forum General Investment and Economics
    Replies: 3
    Last Post: 17th-September-2008, 10:44 AM
  3. Fund Managers and insolvency
    By stuttgart in forum Beginner's Lounge
    Replies: 0
    Last Post: 11th-November-2007, 11:59 AM
  4. Replies: 1
    Last Post: 16th-August-2007, 06:50 PM
  5. Bear Sterns Hedge Fund In Deep Doo Doo
    By wayneL in forum General Investment and Economics
    Replies: 2
    Last Post: 26th-June-2007, 11:57 AM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums