My portfolio. Does this look ok?

@Sheldrick did you continue to purchase/add to your funds after the fall from 6,000?

 

I did, but not alot. For eg, I did invest an extra 1k as it was falling (I can't remember exactly when, but let's say at 5500). I was shocked the very next day when it fell even more - the 1k was completely wiped off the next day.

Also, around Christmas 2015, was when the chinese stock market fell heaps. There was alot of talk in the media that the stock market crash - I did briefly consider selling but thankfully didn't.

Mine reinvests any dividends back into the fund automatically (ie. every 6 months) which has worked out to be really good (with the benefit of hindsight).

With hindsight, I should have invested when it was say 5400 or below. But it could have gone further down, so who knows?

 

Hi Sheldrick thanks for the post.. Some good advice there.

How come you're selling your index to buy an IP? Not happy with the return you're getting which as you say is a bit more than a term deposit?


-Frank

 

I'm selling because I've always intended it to be (part of) my deposit for a first property. I'll probably sell most of it - might leave a small portion of it.

 

Hi Frank

Here's some food for thought Equity investing and Building your investment portfolio

The overall messages within are of note (like LIC's for Beginners)

 

A wee bit more advanced but the linked document shows how Index and active (eg LICs) can work together:

http://fmpl.com.au/uploads/GuideToCoreSatelliteInvesting.pdf

 

Thanks Redwing!

I'm looking forward to reading those shortly.. I had a sneak peak and they do look interesting

-Frank

 

Thanks Austing, looks like I have my homework for the next few days set out now with these PDFs to go through


-Frank

 

A little while ago someone was saying something about adding an ETF to a LIC to boost / balance dividend yield? I think it was @austing ? I've been looking for the discussion so I can review..

But doesn't matter the gist of it was that someone was discussing MLT (It could have been me actually) and then someone said that I could add an ETF such as VAS to boost the yield?

So in a LIC and ETF mix for example Australian Allocation 50% MLT and 50% VAS, what dividend yield should I expect with franking credits?


-Frank

 

If it was me then maybe I’d drank too much home brew at the time. Doesn’t ring a bell or make sense.

 

I believe what Austing said was when LICs are at premium and the markets drop, then buy VAS. The older LICs usually have higher yield than VAS

 

It would usually be the other way round. The LIC would often help boost the yield since they are usually more dividend focused.

Gross yield including franking of VAS+MLT would probably be around 5.5 - 6%.

 

Thanks you for that.. Would that be dividend only yield ? Or total yield including share price growth as well as dividend payment?


-Frank

 

Yield = dividends
Total shareholder return (TSR) = yield + price growth

Using terms correctly will help avoid confusion.

 

Gross Yield = cash dividend + franking credits

 

Hey @Frank Manno
Ive been reading loads of books lately, I'm halfway through this one and it has plenty to offer newbies like ourselves.. It's Australian as well

Teach Yourself About Shares

 

Does this book talk about trading shares, or is it a 101 about shares. Since these threads focus on longer term holding, it wouldn't be good to get confused about trading aspects. Always great to get the knolwedge under the belt, then refine it as needed.

 

I agree with Mac if long-term investing is the aim definitely stick with your plan. This book is an A to Z basics of share trading of all types.The link will allow you to preview the book the contents table shows everything in detail.

 

Defensive assets.

Nobody speaks about these much.. I have seen people's portfolios some of the threads and in the LIC thread and everyone has the preferred LIC's but there doesn't seem to be much going on with defensive. For example, Hybrid Securities..

What is everyones view on defensive assets when you have a portfolio of passive LICs?

Does anyone have any opinion on defensive managed funds such as these:-

Janus Henderson Tactical Income Fund - IOF0145AU
UBS Income Solution Fund - UBS0003AU
Macquarie Income Opportunities Fund - MAQ0277AU
Pimco Global Bond Fund - Wholesale Class ETL0018AU

And the Hybrids..
Commonwealth Bank of Australia (CBAPD)
National Australia Bank (NABPC)


-Frank