Author Topic: Question about Norwegian index funds  (Read 1481 times)

aldrimer

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Question about Norwegian index funds
« on: November 24, 2016, 04:55:12 AM »
Hi guys.

I've been investing in a global index fund (reference index: MSCI World) up until now. Total expenses: 0.31%
The fund's name is DNB Global Indeks: http://www.morningstar.no/no/funds/snapshot/snapshot.aspx?id=F00000JORS

However, just recently some new index funds appeared on the Norwegian market with 0.20% in total expenses. However, these are index funds specific for certain markets, i.e. not global index funds. These are:
- KLP AksjeEuropa Indeks III (http://www.morningstar.no/no/funds/snapshot/snapshot.aspx?id=F00000WEGF) - Reference index: MSCI Europe
- KLP AksjeUSA Indeks III (http://www.morningstar.no/no/funds/snapshot/snapshot.aspx?id=F00000XM0A) - Reference index: MSCI US
- KLP AksjeAsia Indeks III (http://www.morningstar.no/no/funds/snapshot/snapshot.aspx?id=F00000X6B4) - Reference index: MSCI Asia

My question is - would it be a smart idea to buy shares in these funds individually, and make "my own" global index fund? I imagine I could do just that by combining Europe, Asia and the US.
Or would you guys recommend me to just stick with the MSCI world index fund for 0.31% in fees?

The biggest hassle I can imagine with making my own global allocation is rebalancing, as capital gains tax is triggered as soon as I sell shares (you cannot rebalance without capital gains tax being triggered in Norway as of now.)

Would really appreciate some feedback from more experienced investors than me! :)

Thanks!

Seppia

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Re: Question about Norwegian index funds
« Reply #1 on: November 24, 2016, 07:07:20 AM »
I would personally not bother.
0.11% is not insignificant but so is the advantage you have in trading only one index in my opinion.

Linea_Norway

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Re: Question about Norwegian index funds
« Reply #2 on: November 24, 2016, 07:36:32 AM »
Hi.

I have earlier owned shares in KLP indeks Norge, KLP indeks Europe and KLP indeks verden. All gave good revenue, especially the Norwegian one.
Yes, I think that is a way to spread the risks and investing around the world.

There might be a difference though. I read somewhere that global funds often invest in the world's biggest companies. It could be that funds covering a smaller region would also invest into smaller companies.

Please join us here:
http://forum.mrmoneymustache.com/meetups-and-social-events/any-mustachians-living-in-norway/

Hilsen

Linda