How to get the right kind of deal to invest in your favourite fund
Aussie financial advisor Andrew Fergus has revealed how to get an even better deal from your local mutual fund provider.
Fergus, a senior partner at Wealth Management and a member of the Vanguard Advisory Board, said many fund investors have no idea that there are some fund managers that provide better returns than other fund managers.
Fergus said he was inspired to write this article by the story of Mark, who used to work for Vanguard’s Australia-based portfolio manager.
“He’s a fantastic portfolio manager, he does amazing things with his fund,” Mr Fergus said.
“He was very good at it, but it was just not enough.”
What if you could have a little bit more control over your fund?
“Fergus explained how to find the best investment manager for you, based on the factors that matter to you.
He said the key to getting the best deal from an investment manager is to know what makes them tick, so they will tell you exactly what you need to know.”
When you look at the investment manager, there are a number of different things that they do that might make you feel that it’s a great investment.
“For example, the portfolio manager might tell you that their average annual return is 6 per cent or that their portfolio manager is the best in the market.”
But what they’re actually doing is they’re making money because they’re investing in things that are a good fit for your portfolio.
“You can get really good returns from a mutual fund if you look for the right ones,” he said.
The best investments to invest include:Funds that have been tracked by the World BankThe World Bank’s Financial Stability Index (FSI) measures the global risk-weighted index of all the assets in the S&P 500, and it has been linked to a higher return.
The index, which is used to track the global financial system, has been growing since 2007, when the first index was published.
“I think there’s a lot of evidence that the world economy is heading into a post-financial crisis phase,” Mr Wilsons Global Wealth Advisor Mark Wilson said.
Fellow Global Wealth Advisors John O’Brien and Andrew Kowalski also have an interest in the index.
Mr O’Byrne said his own portfolio had been performing well, and he had noticed that Vanguard’s Australian fund manager, Vanguard Investment Management, was doing better than other Australian mutual funds.
However, Vanguard has been criticized for its track record and management practices.
Mr Oberth said Vanguard had been able to improve its financial reporting over the past year.
Mr Kowaleski, who also has a passion for the index, said he noticed a significant difference in Vanguard’s performance in recent months.
“The average fund returns in the last year have been about 6 per per cent, so we’ve got a pretty solid performance,” Mr Kowali said.
“We’ve been a bit lucky and it’s just the way the market has moved in the past few years that has been good.”
Mr Wilsoning said the index was an important part of his portfolio management.
“In my mind, if you’ve got an average return of 6 per-cent, it’s probably not a bad idea to look at what the best mutual funds are doing,” Mr O’Malley said.