One way to access the benefits of the property sector, without all the hassles, is through a listed property trust managed fund.
Vanguard's Index Property Securities Fund provides a low cost way to invest in a portfolio of around 36 listed property securities across the retail, office, industrial, tourism and infrastructure sectors.
Who it may suit
- long-term investors (usually five years plus)
- investors seeking a tax-effective income stream
- retirees or those nearing retirement
- investors seeking long-term capital growth
- self managed super funds
- investors drawing down an allocated pension
Objectives
To match the total return of the S&P/ASX 300 A-REIT Index before taking into account fund fees and expenses.
Benefits
| Diversification and long-term capital growth potential |
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| Tax-effective income stream |
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| Potential for better after-tax returns |
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| Low scaled fees |
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| Regular savings plan |
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Investment requirements and fees
| Minimum investment amounts | |
| Initial investment |
$5,000
|
| Additional investment by cheque |
$1,000
|
| Additional investment by BPAY® |
$100
|
| Holding balance |
$3,000
|
| Switch/withdrawal |
$1,000
|
| Buy/sell spread | |
| Purchase |
+0.20%
|
| Withdrawal |
-0.20%
|
| Management costs | |
| For the first $50,000 |
0.90% p.a.
|
| For the next $50,000 |
0.60% p.a.
|
| Balance over $100,000 |
0.35% p.a.
|
Risk/return profile
At Vanguard, we believe it's just as important to understand the risks and costs of investing, as it is to know about the rewards.
Our risk/return profiler illustrates the expected risk level and potential return for the Vanguard Index Property Securities Fund based on historical data. It's important to remember that past performance is no guarantee of future performance and return profile of each fund may vary from year to year.
