A simple ready reckoner of fund strategies for Australian Shares and the Australian Stock Market

The ‘which’ fund or portfolio strategy conundrum. Here’s some basic tips you should look at first to help you understand what you’re getting and how they work.  Choose the right door for you.


  • a set of rules, behaviours or procedures, designed to guide an investor’s selection of an investment portfolio to achieve their objective

Passive stock strategy:

  • low cost
  • pay fees whether you return is positive or negative
  • value goes up and down with market
  • too big to move in and out of the market.

Active stock strategy:

  • higher costs
  • some are closet index managers
  • varying degrees of success
  • some very good ones that provide consistent returns, and some very bad ones.

Absolute stock strategy:

  • costs vary
  • simple year on year growth regardless of market direction.
  • can move quickly between equity and cash as markets swings from up to down
  • tend not to be big for that reason

Asset gatherers:

  • big funds amassing funds under management for fees only.
  • performance is not an objective, promises are big

Issues to consider:

The key:

  • look for simplicity, if you don’t understand it, they probably won’t either
  • skilled stock analysis and stock research
  • experienced with a track record of stock recommendations
  • managers that are true to their investment style

Don’t be swayed by the fast talker with promises.

Know what you want and demand it – or walk away