Monday, 10 September 2007

SMSF Investment Update

The confirmation notices from Vanguard for our initial investments into the High Growth Fund finally arrived. The initial $5,000 investment was processed on 4 Sep at a unit price of $1.7417, and the first of our regular weekly $25,000 investments was processed the following day at a unit price of $1.7306. The weekly contributions will continue until the bulk of our SMSF balance has been invested into the High Growth fund. With the current market volatility I (we) decided to dollar cost average into the fund rather than invest all our cash at the current price. We will be watching the price with interest while these regular investments are being processed - the best outcome would be a short, sharp drop in unit prices over the next couple of months followed by a rapid rebound to current prices by the end of the year. It's just a likely that the unit price could go up over the next couple of months, in which case a lump sum investment would have been better. Whatever. Once the bulk of our SMSF fund has been invested we'll reduce the weekly investment amounts to match amount we are contributing.

Copyright Enough Wealth 2007

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