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Enduring lessons from smart investors

Managed funds vs Exchange-traded Funds

The ‘Managed fund vs ETF’ conversation continues to play out through social media and online forums. A quick review of this debate online will reveal a range of passionate viewpoints, creative calculations, and diverse case studies. While social media might not always be known for well-reasoned or conclusive debates, this online flurry does highlight a crucial point. Individual circumstances, goals and preferences matter.

When the time comes to weigh up a managed fund or ETF, considering your individual goals and preferences may guide you to one structure over the other.

To SMSF or not to SMSF, that is the question?

Over the years, our clients have regularly asked if they should SM their SF. Specialist research house Investment Trends have explored the rationale for Australian’s setting up funds, monitored their decision making, and analysed their experiences as Trustees. We’ve consistently found that some people simply want greater control over where their superannuation money is being invested. That’s the key driver behind the establishment of around 600,000 SMSFs in Australia.

The question is, what is the appropriate age, super balance, market environment to establish an SMSF? The answer won’t come as a surprise to smart investors – it depends heavily on your personal circumstances and goals.

Is now the right time for active/index investments?

At this very moment, somewhere in the world, someone is making an impassioned argument for active investment. Sharing their conviction that active investment has the edge over passive index investing in the current economic and market conditions.

This often prompts one of our frequently asked questions- is now the right time for active investing? The answer is that neither active nor index investing can credibly be championed as the best approach for any ‘now’. Selecting the appropriate investments relates entirely according to individual goals, risk tolerances, time horizons and return requirements, and not about pitting index against active. There can be a role for both.

If you need advice regarding any of the above please contact our office on 07 4771 3800 to organise a meeting with your financial adviser.


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