Have you ever thought that maybe you want to spend less time on investing and have more time away from business matters to enjoy life? Even long-term value investors need a break, too.
However, you may not want to turn all of your savings over to a financial advisor. One way to take some of the effort and guess work out of choosing stocks is to invest part of your portfolio in fund management companies.
Apart from share trade brokerage commissions, you don’t have to worry about management fees because you aren’t their customer. You are a shareholder and get a return from their stock picking success.
They do what they’re good at and you have more time for your reading or weekend bungee jumping.
Platinum Asset Management Limited (ASX: PTM) has investment funds that specialise in international equities. With overseas markets like the U.S. recovering, it stands to get a better return now than during the GFC. Its share price has risen about 38% in the past 12 months, so that’s a great start.
The financial services provider IOOF Holdings Ltd (ASX: IFL) offers annuities, superannuation and other financial products as well as investment fund management. For shareholders it has a 5.1% dividend yield. In the past three years the total shareholder return was an average annual 13.1%.
You can also tap into the investing skills of Magellan Financial Group Ltd (ASX: MFG), which catapulted onto the investment stage with a huge rise in income and net profit in 2013.
Its share price shot up from about $1.60 to $13.48 in about two years. Its dividend yield is 1.6%. Its funds deal in international equities.
You don’t have to worry about choosing a defensive or aggressive strategy for this kind of investment. You simply get a part of their steady earnings through dividends and benefit from any share price appreciation over time.