Allan Gray vs Coronation + Allan Gray

[Maverick154]

Hi.

So I know there have been threads about which fund to invest in before, but I have a bit of a different question. I would like to know what your opinions are on investing in an RA/Endowment.

Option 1: Choose Allan Gray and invest in the Allan Gray Balanced Fund and then in the Coronation Balanced Fund (through Allan Gray), I have checked the fees and based on the latest information the TER for doing this would be 1.75% for the past 12 months vs 1.64% for going direct to Coronation, this is only for the Coronation Balanced Fund that I am referring to

Option 2: Invest in the Allan Gray Balanced Fund through Allan Gray and then invest in the Coronation Balanced Fund through Coronation, which means I do not pay that extra 0.11% in fees as shown above

What do you guys feel would be the best move considering I get access to way more funds through Allan Gray and the price to pay is not really that high, but knowing that those are the two funds I want to invest in for example, would it not just make more sense to get an account with each of them and invest in their funds directly?

Another question is how the long term impact would be in making this decision?

Thanks in advance for the replies!

 

[dunkyd]

Stop stressing about tiny %'s , share your investment into AG and Coro. Put equal amounts into their top 5 performers , sit back and watch in amazement.

 

[Maverick154]

Stop stressing about tiny %'s , share your investment into AG and Coro. Put equal amounts into their top 5 performers , sit back and watch in amazement.

I am assuming you mean option 1?

 

[dunkyd]

No. 10 different UT investments. Top 5 performers of each company. Spread risk.

 

[Sensorei]

The stock market is going to crash pretty soon so watch the higher risk funds that might be affected the most.

 

[Maverick154]

The stock market is going to crash pretty soon so watch the higher risk funds that might be affected the most.

That is why I want to go into the Balanced Funds.

 

[Sensorei]

That's what I have done.

 

[KleinBoontjie]

The stock market is going to crash pretty soon so watch the higher risk funds that might be affected the most.

Sorry to interrupt, How is this gonna affect ETF's like FNB's RMB top 20's??

 

[Garson007]

I would go for option 1. Spreading risk among platforms doesn't actually mean anything, and you get better service the more you invest through a single platform. That's as long as the platform is not your only financial advice - when it comes to advisers shop around.

Sorry to interrupt, How is this gonna affect ETF's like FNB's RMB top 20's??

Uh, badly. ETFs follow the stock market exactly. Personally, it would mean I get to buy into more stocks every month.

 

[Maverick154]

I would go for option 1. Spreading risk among platforms doesn't actually mean anything, and you get better service the more you invest through a single platform. That's as long as the platform is not your only financial advice - when it comes to advisers shop around.

I do not intend to use advisers, I do not really see what value they add if I am just investing in a balanced fund? Are they magically going to do something that I cannot myself do?

 

[xrapidx]

The stock market is going to crash pretty soon so watch the higher risk funds that might be affected the most.

I've been hearing this "very soon" for a few years now....

 

[Garson007]

I do not intend to use advisers, I do not really see what value they add if I am just investing in a balanced fund? Are they magically going to do something that I cannot myself do?

They might suggest a better distribution (but they're really idiots and just trying to sell the idea their tech staff comes up with). I'm just saying, that if it's not going to go through advisers - go with option 1. It allows more flexibility in the future too.

 

[Freshy-ZN]

Hi.

So I know there have been threads about which fund to invest in before, but I have a bit of a different question. I would like to know what your opinions are on investing in an RA/Endowment.

SNIP

As per your first post: what do endowments have to do with anything? Are you asking whether to invest in an RA, either using option 1 or 2 OR whether to invest in an endowment using either option 1 or 2? Thats 4 different potential scenarios.

If so let me try get rid of 2- there is no real good reason to invest in an endowment. The 80s are long gone.

 

[xrapidx]

The 80s are long gone.

 

[Brontosaurus]

The stock market is going to crash pretty soon so watch the higher risk funds that might be affected the most.

Do you have any evidence whatsoever to back up this baseless statement?

 

[Garson007]

Do you have any evidence whatsoever to back up this baseless statement?

P/E Ratios.