LIC & LIT Strategy to roll over super from retail managed fund into LICs portfolio

Discussion in 'Shares & Funds' started by PropertyInsight, 16th May, 2018.

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  1. PropertyInsight

    PropertyInsight Well-Known Member

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    I have my super fund with Perpetual under Australia Share Investments. However, the performance is on 8% for the last 5 years. Comparing to LICs with low cost industry super fund, my super hass significant under performed. Hold around $200K in super fund and increase only 10K (exclude my contributions).

    My sample LIC portfolio has performed very well in the 3 years.
    I want to roll over to Australian Super and invest in a LIC portfolio. However, I want to mimimise the lost of current fund disposal. Below is me strategy:

    1. As Australian share index goes up now, I will roll over to Australia Super and put all fund in balanced investments.

    2a). Slowly build the LIC portfolios by buying good-buy LICs over the time.

    2b) Or wait for Share market indexes goes down, then acquire LICs shares.

    2a or 2b are a better option?
    Any other suggestions?
     
  2. Cadbury99

    Cadbury99 Well-Known Member

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    I had a look at Perpetual fees , they look to be very very high.
    If I was being charged that amount I would need a very good reason to not move from that fund manager as fast as I could.

    I’ll leave it others to give opinions about how to move to LIC’s if that is what you wish to do.
     
    pwnitat0r and PropertyInsight like this.
  3. Snowball

    Snowball Well-Known Member

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    If you roll over to Aus Super and pick a basic Australian Shares option, it will be invested in an index fund (as far as I know) and will achieve just as good returns as the LICs, for very low cost and no further decisions to make.

    It certainly can be as easy as that, and there's a lot to be said for keeping it simple. Best return for the effort invested :)
     
    sharon likes this.
  4. PropertyInsight

    PropertyInsight Well-Known Member

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    I was said that if I sell LICs or roll over other super funds, I have to pay 15% cgt on the gain. However, if I invest in balance/growth investments, I do not have to pay 15% CGT if I rolld over. So, it is better to keep in balance/growth investments.