I'm looking for a cheap index fund (or diversified fund based on
indices) for the core of my portfolio.
Vanguard's minimum investemnt of $5000 and minimum additional investment
of $500 are a bit too big for me. I want to make better use of
dollar-cost-averaging.
Many retail funds allow $1000 initial & $100 monthly addition; some
allow as little as $50 initial & $50/fortnight.
Does anyone know of anything like what I'm looking for?
Cheers
newbie
You can get into Vanguard through www.yourprosperity.com.au with lower
minimums than your quote below. Your Prosperity charges 0.65% fee on top of
the fees of the fund (although the wholesale fees you get this way are often
more than 0.65% lower than the retail fees - you'd have to check the fees
for Vanguard direct vs through Your Prosperity).
N.B. there are rumours that Your Prosperity is for sale by NAB (its owner).
Other approaches are a listed fund such as streetracks
http://www.streettracks.com.au/ or
Commonwealth Diversified Share Fund
http://www.comsec.com.au/LearningCentre/frame.asp?Filename=CDISFund.asp
Or a listed investment company such as Argo or AFIC (these are not index
funds but they are low cost).
Listed funds and listed investment companies can be bought and sold on the
stock market so there is a very small minimum purchase. However if the $500
minimum additional investment is too much for you, that might not work for
listed funds and listed investment companies because of brokerage (e.g.
Comsec charge of 19.95 for small trades would be nearly 4% of a $500 trade).
"espressy" <bananabag@no-spam> wrote in message
news:beiv14$6q9$1@no-spam
>
> I'm looking for a cheap index fund (or diversified fund based on
> indices) for the core of my portfolio.
>
> Vanguard's minimum investemnt of $5000 and minimum additional investment
> of $500 are a bit too big for me. I want to make better use of
> dollar-cost-averaging.
>
> Many retail funds allow $1000 initial & $100 monthly addition; some
> allow as little as $50 initial & $50/fortnight.
>
> Does anyone know of anything like what I'm looking for?
These...
http://www.streettracks.com.au/
are about the cheapest in terms of MER (but you pay brokerage on
transactions as they're traded on the ASX).
HTH,
Steve = : ^ )
>
> I'm looking for a cheap index fund (or diversified fund based on
> indices) for the core of my portfolio.
>
> Vanguard's minimum investemnt of $5000 and minimum additional investment
> of $500 are a bit too big for me. I want to make better use of
> dollar-cost-averaging.
>
> Many retail funds allow $1000 initial & $100 monthly addition; some
> allow as little as $50 initial & $50/fortnight.
>
> Does anyone know of anything like what I'm looking for?
>
> Cheers
> newbie
>
--
Not my real email address of course but true all the same. Reply to
steveb.bigpond@net@no-spam swapping the "." and the "@no-spam"s.
Thanks for your input.
Vanguard MERs for wholesale and retail are 0.9% and 0.35%, yes the
difference is unusually small.
I found the Commonwealth Diver Share Fund you mentioned interesting: I
can avoid paying brokerage yet get the benefits of a listed fund.
I've never paid much attention to this fund, probly because Commonwealth
doesn't do much promotion these days - I couldn't even get the PDS for
the fund, the web page was down.
Cheers
Tom N wrote:
> You can get into Vanguard through www.yourprosperity.com.au with lower
> minimums than your quote below. Your Prosperity charges 0.65% fee on top of
> the fees of the fund (although the wholesale fees you get this way are often
> more than 0.65% lower than the retail fees - you'd have to check the fees
> for Vanguard direct vs through Your Prosperity).
>
> N.B. there are rumours that Your Prosperity is for sale by NAB (its owner).
>
> Other approaches are a listed fund such as streetracks
> http://www.streettracks.com.au/ or
> Commonwealth Diversified Share Fund
> http://www.comsec.com.au/LearningCentre/frame.asp?Filename=CDISFund.asp
>
> Or a listed investment company such as Argo or AFIC (these are not index
> funds but they are low cost).
>
> Listed funds and listed investment companies can be bought and sold on the
> stock market so there is a very small minimum purchase. However if the $500
> minimum additional investment is too much for you, that might not work for
> listed funds and listed investment companies because of brokerage (e.g.
> Comsec charge of 19.95 for small trades would be nearly 4% of a $500 trade).
>
> "espressy" <bananabag@no-spam> wrote in message
> news:beiv14$6q9$1@no-spam
>
>>I'm looking for a cheap index fund (or diversified fund based on
>>indices) for the core of my portfolio.
>>
>>Vanguard's minimum investemnt of $5000 and minimum additional investment
>>of $500 are a bit too big for me. I want to make better use of
>>dollar-cost-averaging.
>>
>>Many retail funds allow $1000 initial & $100 monthly addition; some
>>allow as little as $50 initial & $50/fortnight.
>>
>>Does anyone know of anything like what I'm looking for?
>
>
>
Thanks for the info.
I'm quite surprised these funds are so big. The streetTRACKS S&P/ASX 200
has more than half a trillion in market capitalisation.
Cheers
Steve Ball wrote:
> These...
>
> http://www.streettracks.com.au/
>
> are about the cheapest in terms of MER (but you pay brokerage on
> transactions as they're traded on the ASX).
>
> HTH,
> Steve = : ^ )
>
>
>>I'm looking for a cheap index fund (or diversified fund based on
>>indices) for the core of my portfolio.
>>
>>Vanguard's minimum investemnt of $5000 and minimum additional investment
>>of $500 are a bit too big for me. I want to make better use of
>>dollar-cost-averaging.
>>
>>Many retail funds allow $1000 initial & $100 monthly addition; some
>>allow as little as $50 initial & $50/fortnight.
>>
>>Does anyone know of anything like what I'm looking for?
>>
>>Cheers
>>newbie
>>
>
>
There is an ASX web page on listed managed investments
http://www.asx.com.au/markets/lmis_am2.shtm
"espressy" <bananabag@no-spam> wrote in message
news:beo6t3$51v$1@no-spam
> Thanks for your input.
>
> Vanguard MERs for wholesale and retail are 0.9% and 0.35%, yes the
> difference is unusually small.
>
> I found the Commonwealth Diver Share Fund you mentioned interesting: I
> can avoid paying brokerage yet get the benefits of a listed fund.
> I've never paid much attention to this fund, probly because Commonwealth
> doesn't do much promotion these days - I couldn't even get the PDS for
> the fund, the web page was down.
>
> Cheers
>
>
> Tom N wrote:
> > You can get into Vanguard through www.yourprosperity.com.au with lower
> > minimums than your quote below. Your Prosperity charges 0.65% fee on
top of
> > the fees of the fund (although the wholesale fees you get this way are
often
> > more than 0.65% lower than the retail fees - you'd have to check the
fees
> > for Vanguard direct vs through Your Prosperity).
> >
> > N.B. there are rumours that Your Prosperity is for sale by NAB (its
owner).
> >
> > Other approaches are a listed fund such as streetracks
> > http://www.streettracks.com.au/ or
> > Commonwealth Diversified Share Fund
> > http://www.comsec.com.au/LearningCentre/frame.asp?Filename=CDISFund.asp
> >
> > Or a listed investment company such as Argo or AFIC (these are not index
> > funds but they are low cost).
> >
> > Listed funds and listed investment companies can be bought and sold on
the
> > stock market so there is a very small minimum purchase. However if the
$500
> > minimum additional investment is too much for you, that might not work
for
> > listed funds and listed investment companies because of brokerage (e.g.
> > Comsec charge of 19.95 for small trades would be nearly 4% of a $500
trade).
> >
> > "espressy" <bananabag@no-spam> wrote in message
> > news:beiv14$6q9$1@no-spam
> >
> >>I'm looking for a cheap index fund (or diversified fund based on
> >>indices) for the core of my portfolio.
> >>
> >>Vanguard's minimum investemnt of $5000 and minimum additional investment
> >>of $500 are a bit too big for me. I want to make better use of
> >>dollar-cost-averaging.
> >>
> >>Many retail funds allow $1000 initial & $100 monthly addition; some
> >>allow as little as $50 initial & $50/fortnight.