Kiwisaver Strategy

[Valuegrowth]

Still, I am with 100% cash fund. I am looking forward to transfer my cash fund to balance fund, dividend fund or growth fund once I see value in the market. At this juncture, I would like to preserve my capital.

[smpl]

Us too...........................

Still, I am with 100% cash fund.

[kiora]

I'm not sure that some investors here don't confuse risk and volatility ?
Take for example this fund manager
https://milfordasset.com/funds-perfo...ew-performance
There are all sorts of risks with investing.
The main risk I perceive is underperformance over a time period.

[SBQ]

My view on passive vs active is that the good active should beat the passive, but they will charge for it. When everything goes wrong they have the opportunity to sell high and buy low, something which Milford seems to have done well. Perhaps they could share their ideas with Juno / Pie Funds.
I now have the decision to make whether Juno, relying on Pie Funds, will bounce back or is it time to stop throwing good money after bad rubbish and move to one of the others.

The only thing that matters to the investor is the net return after their take. So when you fact their commissions and management fees in active fund, the DO NOT beat the market index. The financial industry is baked into the idea of selling the concept that 'active fund managers' do better but they often omit their end fees and taxes (ie buying in and out triggers taxes to pay within the fund vs long term passive buy the index and hold does not).

Warren Buffet made this wager between actives vs passives over 10 years ago that in a 10 year time frame, cumulatively, active fund managers do NOT beat the S&P index returns net of taxes and admins fees. I believe the same priciples apply here in NZ with the NZX when investors have a habit of expecting dividend payments from NZ shares when it erodes the stock price of having no capital gains (ie TWG.NZ has a diviidend paying policy... and it's stock price has stayed the same for over 20 years; even less if you factor inflation). Anyways, Buffet's rank on active / hedge funds is on YouTube if serious investors care to watch it.

[Valuegrowth]

https://www.stuff.co.nz/business/mon...nk-rescue-plan

[SBQ]

https://www.stuff.co.nz/business/mon...nk-rescue-plan

Is this article a little out of date? Mar 21st, 2018. Already Parliament has been working on a deposit insurance plan for NZ:

https://www.beehive.govt.nz/release/...iament%20today

[Valuegrowth]

Still, I am with 100% cash fund. I am looking forward to transfer my cash fund to balance fund, dividend fund or growth fund once I see value in the market. At this juncture, I would like to preserve my capital.

I am doing well with my Kiwisaver. Finally, it is up by more than 2% where as other types of funds have dropped by more than 5% over the last one year. I found there is a no value fund to choose for my Kiwisaver. I don't think growth stocks will do well in the coming decade.

[GTM 3442]

I have a KiwiSaver account. It's a balanced fund. It's not very big.

I use it to benchmark my non-KiwiSaver portfolio performance. It's really handy.

[Aaron]

You have to wonder, Kiwisaver default schemes are now directed to "balanced" funds rather than "conservative" funds just in time for a recession.

It might have the benefit of people taking more notice of their Kiwisaver funds especially if we have a recession and rising interest rates mean negative returns.

Probably not what the world improvers were hoping for but as is often the case intelligent well meaning meddling world improvers making things worse for the people they are trying to help.

They need to understand their theory only works if interest rates keep dropping and money continues to be debased. Which is probably not a bad bet, probably only a little early on the timing.

[kiora]

Value creating

"Morningstar data director Greg Bunkall said Milford was a high performer because it had a very loose mandate around asset allocation. “It allows them to generate a differentiated return profile, as they can substantially dial up or down the portfolio’s risk buckets as they see the markets evolving.”"

https://www.stuff.co.nz/business/mon...t-30-in-a-year