The Art of Investing - $10,000 Trial
Righto Investors! The Art of Investing Team is pleased to announce a new feature to the website.
We have invested a hypothetical $10,000 across the main investment asset classes. Over the coming 12 months (and beyond) we will regularly update the capital value and income generated from each asset class.
No single asset class performs the best all of the time. Every asset class has its time to shine. As the returns and performance of each asset class are updated we will discuss what has impacted the capital value and income with the intention of pointing out the risks and benefits you are exposed to as an investor.
For ease of administration all of the investments were made COB on 1 June 2012. The investments are as follows:
$10,000 – At Call Cash Account with Citi Bank
The introductory rate is 5.70% for the first 4 months and then decreases to 4.25% Further updates will be released if/when these rates change.
$10,000 – Fixed Term Deposit with CUA
This investment will be fixed for a period of 12 months and the rate currently offered is 5.20%. As this is fixed term we can already establish what the return will be. Interest will be $520 for the full year.
$10,000 – Invested in Property Managed Funds.
50% in Vanguard Property Securities and 50% in Russell Intl Property Securities Fund (Hedged).
The cost of this investment is 0.73% pa.
$10,000 – Invested directly in Australian Equities
$1,000 invested in the following shares. BHP, CBA, NAB, FMG, WOW, SOL, GPT, CCL, CSL, AMP.
Brokerage for each purchase is $19. Shares were purchased at the closing price on 1 June 2012. We have spread the investment across the following sectors: Banking, mining, retail, insurance, pharmaceuticals, food and beverage.
$10,000 – Invested in International Equity Managed Funds
50% invested in Vanguard Intl Share Index and 50% invested in Vanguard Intl Shares Index ($A Hedged)
The above investments have been chosen as they fit within each of the asset class categories and also that the performance and income are published regularly and are available to the public as soon as possible after the end of the reporting period.
Stay tuned for the release of the spread sheet which will be used to track the performance of each investment.
Happy investing!!
Note: The Art of Investing has no professional affiliation or alignment with to any of the above companies. The Art of Investing team does have funds invested in the some (but not all) of the chosen investments. This exercise is for illustrative purposes only and not to taken as financial advice.
