Thursday, October 05, 2006

Which ie better - Growth Fund or Global Equity Fund?

Which is better - Growth Fund or Global Equity Fund?

My view: both are suitable.

The Global Equity Fund has 100% invested in equity. It is suitable for long term investments, ie 10 years or longer.

The Growth Fund has 70% invested in equity and 30% in bonds. It has less volatibility and a slightly lower return. But the difference is small.

Most of my personal investments are in the Growth Fund. I may find a suitable time in the future to switch to Global Equity (eg if there is a severe market correction). In the meantime, my current investment is satisfactory.

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