Unit 14: Managed Funds
- Passive funds have marginally lower returns.
- 0% entry fee is preferable.
- Exit and entry fees effect every single investment.
- Risk is dependent upon what is being invested.
- Don't need to be that cautious with defaulting if investing with normal assets.
- Able to start off with as little as $2-3k but there are a lot of managed funds out there giving you less control.
- Going with financial institution will be easier and provide confidence in investments.
- No guide for future returns.
Unit 15: Debt - foe and friend
- Gearing magnifies your returns.
- Can decrease the size of your 'pie'.
- Also known as leverage, and definitely not a short term strategy.
- Borrowing to buy a house IS gearing!
- Easier to get a margin loan compared to property.
- Able to negotiate interest rates, as well as margin loans being closely monitored.
- Don't ever pay capitalising interest.
- Make sure I have money saved somewhere else if my LVR is close to threshold.
- Never get in the position where I'm forced to sell my shares.
- Margin loans are not popular for managed funds.
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