Rabo Direct Gold Investment fund

zod · 09-03-2008 03:08PM #1

I have no experience of rabo-direct or investing into these type of funds

Merrill Lynch IIF gold fund

as a novice investor .. is this a reasonable first investment, anyone with some experience in this would be great thanks!

silverharp · 09-03-2008 04:44PM

Its a good low cost way of investing in a sector. If you are going for the gold fund I would average in over 6 mths or so, or wait for a decent pullback, you always get them even in a bull market.

zod · 09-03-2008 05:14PM

thanks .. how would you categorise the risk on investing in this fund ?

1=safe ; 10= very agressive

silverharp · 09-03-2008 06:56PM

zod wrote: »

thanks .. how would you categorise the risk on investing in this fund ?

1=safe ; 10= very agressive

if you have decided you want a gold investment of some sort and if gold coins in your hand is 1 then 3-4 , but again I wouldn't chase the market at the moment, the gold shares and bullion have done very well recently but gold could correct 15%/20% in the next couple of months as part of a more general correction in the markets, that is when you want to be buying but then again the correction may not be bad so averaging in or better still set up a monthly amount, that way you don't worry about timing. If it looked like the dollar was going to rally against the Euro then I'd get fully invested to take advantage of that. Lets just say that 2 years from now you would be glad you did.

Tiesto · 10-03-2008 08:53PM

am I the only one whos Rabo funds are performing terrible the last couple of months? Yeah I understand the markets are in bad shape at the moment, but arent these supposed to be actively managed funds!

A Random Walk · 10-03-2008 10:02PM

Tiesto wrote: »

but arent these supposed to be actively managed funds!

And?

There's plenty of studies that show that 90%+ of actively managed funds underperform the index over medium to long periods. If you were sold the idea that "active management = protection in falling markets", sorry.

For the OP. I would class this as a high risk fund. Gold has doubled (trebled?) in the past year, there's no reason why it couldn't do the same on the downside. As ever I would recommend that you diversify your investments, and putting everything into one fund could expose you to large fluctuations. Gold is being hyped at the moment and you should ask yourself the question as to whether the point at which taxi drivers are recommending you buy gold is the right time to buy?

Low risk in equities is typically seen as large established blue chips in developed Western countries.

Tiesto · 10-03-2008 10:03PM

would you have links to some of those studies?
I could do with the read..
Cheers

A Random Walk wrote: »

And? There's plenty of studies that show that 90%+ of actively managed funds underperform the index over medium to long periods. If you were sold the idea that "active management = protection in falling markets", sorry.

For the OP. I would class this as a high risk fund. Gold has doubled (trebled?) in the past year, there's no reason why it couldn't do the same on the downside. As ever I would recommend that you diversify your investments, and putting everything into one fund could expose you to large fluctuations. Gold is being hyped at the moment and you should ask yourself the question as to whether the point at which taxi drivers are recommending you buy gold is the right time to buy?

Low risk in equities is typically seen as large established blue chips in developed Western countries.

A Random Walk · 10-03-2008 10:41PM

Tiesto wrote: »

would you have links to some of those studies?
I could do with the read..
Cheers

Here's a good summary
http://www.travismorien.com/indexactive.htm

Long, but worthy of at least looking at the graphs.

Tiesto · 10-03-2008 10:48PM

thanks for that!

Rabo Direct Gold Investment fund

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