how about LPT's……..listed property trusts? Does anyone know where i can get more information about these, which ones to invest in, a website, a broker etc?
managed funds HAVE done well recently due to the sharemarket boom.
this does NOT mean they will return 20% or more over the next 12 months. Ye gods! thats like saying in mid 2003 :
"property has returned 40% over the last year so Im gonna put all my money there"
its just as smart as buying managed funds now.
managed funds had NEGATIVE RETURNS in 2002 & 2003 as I recall.
I think it is too much of a generalisation to say managed funds are doing better than property. True, share and property (ie growth) funds have performed well since 2003 while bond funds have not done so well. But beware as past performance not being a very good indicator of future performance.
There are advantages and disadvantages. I think managed funds are useful for diversification purposes. Even with property, managed funds can give exposure to commercial, retail or industrial property across the country. And recently global property funds are giving investors the ability to get international exposure.
If managed funds complement a direct property portfolio, then why not utilise them?
Regards,
John Cookbasing investing on historical returns for funds is like using todays evening weather summary in place of tomorrows forcast.
IT BEARS ABSOLUTELY NO CORRELATION
crashy wrote:basing investing on historical returns for funds is like using todays evening weather summary in place of tomorrows forcast. IT BEARS ABSOLUTELY NO CORRELATIONIf the last weeks weather has been stinking hot in the middle of summer then is a reasonable outlook to suggest another hot day is coming…
Having said that I don't disagree. But historical returns do indicate the ability of the management team onboard and the workability of their investing strategy.
There is a theory that if you invest in last years worst performing market then you will do better than if choosing the best. If you follow this then perhaps it is time to start looking into property again?
Just thoughts – no advice intended.
Mortgage Hunter wrote:Why not both in your portfolio? Thats what I do. Simon Macks Residential and Commercial Finance Broker [email protected] 0425 228 985 Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.I read the first few posts…and finally someone has some sence to make this statement..congratulations….you are the winner in the "common sense" competition!
Best of all, managed funds in general are secured against . . . the wind!!
I suppose if you're good, you're good, though generally managed funds appeal to those who aren't that good..I look forward to the future, when the share market goes through a correction, investors will pull their money out of the share market and buy property. Being so cashed up from a booming share market is only positive for the property market.
Agree Andy;
keep some funds available to buy some of those bottomed out stocks and some more property before the smart stock market players get out and start pumping up the property market when they start putting their money in property.
I read an article by Bill Fleckstein from MSN money the other day. He said the current economical climate in the USA (and the world I guess) is as close to the lead up to 1929 as he has seen. He was predicting another possible "major correction". Of course, anyone can predict a market crash; it's inevitable, but when? He thinks sooner than later.
Interestingly, I had just finished reading a biography of the years leading up to The Crash only a few weeks before his article, and I was thinking at the time "gee; this current economic climate seems very similar to the conditions leading up to The Crash". True.
Can we both be right? One of the biggest factors at the time of The Crash was everybody's attitude to the future. Everyone was in a state of denial – the good times will never end.
Unfortunately they did, and they ended very hard and very fast.
What about PsychoFX’s maganged fund? (http://psychofx.org)They don’t charge any fees or commissions at all. Unlikely the other funds, they only charge percentage of the profits.
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