|
Hi Rob and welcome to InvestEd.
I think you need to decide what type of investor you are and what you plan on doing with the investment.
If you are a hands-on investor and like to watch your investments regularly and make adjustments as required, then direct share ownership is a good way to go.
However, if you aren't prepared to do the ongoing research into which stocks you should keep, which you should sell, and which you should buy more of ... then a managed fund or listed investment company is a good alternative - especially if you have smaller amounts of money to invest or want to invest regularly (perhaps even monthly). This then gives you exposure to a range of shares, chosen and monitored by a team of experts who do this for a living. The diversification and management should hopefully shield you from the big mistakes or unexpected problems with individual shares.
If you don't beleive that managed funds can consistently outperform the market, and don't like the fees they charge, then consider a low cost index-tracking Exchange Traded Fund like STW - this gives you exposure to the entire ASX200 index, you own a little bit of everything, and you invest in it just like you would any other share - it is traded on the stock exchange.
None of these strategies is necessarily any better or worse, it largely comes down to how you like to invest and manage your investments, and how long you plan on keeping the investment for.
__________________
Sim'
This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.
|
