Forum Archive Index - June 2002

["lippy" <rathel@xtra.co.nz>]

    Interesting supplement that looks at advantages of managed funds vs propertyand vise versa. Have to say the argument for managed funds dosent look too convincing and one gains the impression that the people running these funds are not so much concerned with performance but with gaining as many clients as possible

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         One fund manager  warns DIY investors" they risk missing out on this years equity upswing simply by owning a handful of stocks"

 

     One might reasonably argue that you could equally miss out on a huge downturn and that this is in fact a stock picking environment where a few well selected stocks have more chance of outperforming than a huge basket of stocks

 

      Another fund manager says "investors cant afford to sideline themselves from the market."

 

      Again this is highly questionable, those who have been on the sidelines this year (globally) have already avoided double digit declines and there could possibly be more to come.  Many of these fund managers appear on shows on CNBC etc talking bearishly about the next few months yet there funds have no qualms about advertising for and taking on new clients, then when the value of the funds decline they start coming out with the old cliches like

       Its not timing the market, its time in the market that counts.   As those who have studied compound interest etc, profitability increass dramatically with a good start and even better when annual returns increas at a uniform rate.  Those investing in funds over the last year or so may have to wait a long time for the kind of returns they were led to expect from reading the funds brochures.

 

    I for one would rather have more control and will stick to DIY

 

   Nick