Author Topic: Novice Australian Investor Needs Expert Advice!  (Read 1721 times)

Sky23

  • 5 O'Clock Shadow
  • *
  • Posts: 5
Novice Australian Investor Needs Expert Advice!
« on: August 10, 2014, 05:59:48 AM »
First post!

Hi guys,

I'm an Australian in his early 30's and looking for some expertly, Mustachian advice on investing in the Australian stock market.

I've done some initial research and what I've learned is basically that I should be looking to put my money into an Index fund, and to avoid actively managed funds because they eat up your profits via fees.

So what is the best index fund in Australia?

Ideally I'm looking for something not too risky but will outperform a savings account (currently around 4%).

Sorry if what I am saying sound ultra-newbish but I am seriously green in the world of investing.

Also I'm not one who is shy of learning, if anyone could also recommend a good book, blog or resource where I can learn all about the Australian stock market that would be great too.

Thanks for your time, any advice would be much appreciated =)

marty998

  • Walrus Stache
  • *******
  • Posts: 6586
  • Location: Sydney, Oz
Re: Novice Australian Investor Needs Expert Advice!
« Reply #1 on: August 10, 2014, 03:44:44 PM »
Hi Sky,

There's a few of these Aussie threads popping up, you're in good company.

The "best" index fund is a subjective thing. One way or another all track a market performance, and they are differentiated on fees, entry/exit costs and liquidity (how fast you can get your money out).

I'm a fan of the State Street SPDR funds which are listed on the ASX. The most well known is probably the ASX 200 fund (STW).

Other options include listed investment companies such as Australian Foundation or Argo.

Else you could buy the mum and dad portfolio. My parents figure that everyone eats, talks and banks, so they bought Woolworths, Telstra and CBA, ANZ and WBC shares. Cannot fault the logic given the returns of the past 2 decades.

cheers

TB_J

  • 5 O'Clock Shadow
  • *
  • Posts: 33
  • Location: Perth

Sky23

  • 5 O'Clock Shadow
  • *
  • Posts: 5
Re: Novice Australian Investor Needs Expert Advice!
« Reply #3 on: August 13, 2014, 07:15:57 AM »
Thanks Marty and TB for the replies, I will look into all the info you have provided =)