Comments on: Index Fund: Lower Fees, Reliable Growth, Less Volatility

By: john hanson

john hanson — Fri, 19 Feb 2010 21:56:39 +0000

Would buying ASX shares be like investing in an index fund, as volume and market level are related to a certain extent?

By: Ming

Ming — Thu, 11 Feb 2010 07:32:53 +0000

I like this idea of index fund as it is so transparent, with low fees and easily monitored.

Can someone clarify how it works for someone new to investment? If I invest $10,000 for a year and the index went up 8%. What is my returns?
I expect Returns = Amount invested + 8% – 0.75% management fees + dividends,
which is Returns = $10,000 + $800 – $75 + dividends paid out.

Is this unknown dividends part of the equation? With superannuation, you simply see a net figure.

By: Liam

Liam — Tue, 24 Nov 2009 02:20:44 +0000

Responding to post 42

Paul I don’t know of a leveraged passive fund like you describe. This may be simply because an investor can more easily create the same leverage with a margin loan over an index fund. In this way, the investor can determine precisely what level of gearing he or she is looking for, including possible tax deductions.

Internally geared active funds may be there to meet some super fund requirements, but you didn’t mention if this was important to your search.

By: jimbo

jimbo — Fri, 03 Jul 2009 01:00:52 +0000

why no answer to comment/question 43 thankyou

EDITOR: The “safety” of investing in shares through another company eg: a Vanguard Index fund or a Statestreet ETF depends on that company’s management and risk procedures at the time.

I doubt either will go bankrupt any time soon but no one can predict the future

By: jimbo

jimbo — Fri, 26 Jun 2009 01:19:44 +0000

hello again just wondering how safe your money is if you do put a lump sum in an index fund such as any of vanguards as theirs is the only index fund that I know of. Also same question about etf products of which I can find many could any of these large companies go belly up and lose everybody’s money or are there safeguards in place for the investors that own the shares thankyou

By: Paul Brake

Paul Brake — Thu, 21 May 2009 03:30:34 +0000

I would like to invest money in an internally geared Australian equity fund which is an index (passive) manager, preferably in a fund with a reasonably high minimum initial investment (say $50,000) to keep the fees as low as possible. I am aware of several internally geared actively managed Australian equity funds, but I can’t find any fund with the characteristics I noted. Any suggestions?