Your best chance of achieving your investment goals is to take a long-term view and diversify your portfolio. While one stock or asset sector might deliver great returns one year, it is difficult to pick winners every year.
Research confirms that in most cases investors are better off investing in the index, rather than chasing active returns over the long term. Because index funds usually invest in all or most of the securities in the index, they are more diversified and a lower risk investment strategy than many actively managed funds.
Why Vanguard's® Investor Index Funds?
Vanguard's Investor Index Funds aim to deliver broad diversification at low cost and let markets do their work over the long term. Because they diversify across a range of asset sectors, industries and securities, our index funds can reduce your exposure to market risk and improve your performance potential.
Available in single and multi sector investment options Vanguard's Investor Index Funds are suitable for individuals, joint investors, self managed super fund investors, businesses and trusts. You can build your own asset allocation by selecting your mix of sector investment options like Australian and international shares, property and fixed interest.
Or, you can choose from one of our LifeStrategy® options, which are available in four pre-determined investment profiles to suit the risk conscious to more aggressive investor. This means you simply choose the investment profile that best suits you and our award-winning team will take care of the rest. You can easily switch investment options when your needs change without having to pay any switching costs, other than the usual buy/sell spreads that apply.
With Vanguard's low fees, around half the industry average of retail managed funds, you can be assured your investments are off to a head start. Scaled management fees apply to balances over $50,000 so the more you invest the less you pay. And, there are no upfront fees (normal buy sell spreads may apply). You can easily switch investment options when your needs change without having to pay any switching costs, other than the usual buy/sell spreads that apply.
Saving for your investment goals is easy with Vanguard's smart investment plan. Once you've opened your investment with $5,000 or more, you can use BPAY® to start a regular investment plan with as little as $100.
| LifeStrategy® diversified options | Investment profile | |
| Conservative | Diversified portfolio favouring lower risk income assets. Includes 30% growth assets | |
| Balanced | A balanced mix (50:50) of growth and income assets | |
| Growth | Diversified portfolio with a bias towards growth assets (70%) | |
| High Growth | Growth oriented portfolio with a small allocation to income assets (10%) | |
| Sector investment options | Investment profile | |
| Australian Shares | Invests in around 300 Australian companies listed on the Australian Stock Exchange | |
| High Yield Australian Shares | A diversified portfolio of Australian shares with a bias towards those paying cash dividends and franking credits. Combines a tax-effective income stream with the potential for capital growth. | |
| International Shares | Invests in around 1,700 shares listed on the exchanges of 22 of the world's major economies | |
| International Shares (Hedged) | Invests in around 1,700 shares listed on the exchanges of 22 of the world's major economies. The fund is fully hedged into the Australian dollar, removing the impact of currency movements. | |
| Property Securities | Invests in around 30 listed property securities across the retail, office, industrial, tourism and infrastructure sectors | |
| Diversified Bond | Invests in around 300 Australian and 3,000 international fixed interest securities. Diversified approach lowers risk while providing opportunities for enhanced returns. | |
| Cash Plus | Mix of Australian cash and high quality, higher yielding debt securities | |
Choosing your investment options
Your investment timeframe and attitude to risk are two of the most important factors when choosing your investment strategy . Risk is measured by the potential fluctuations in value of your investments. While higher risk investments are likely to grow higher over the longer term they are likely to fluctuate more widely and more often over shorter time periods.
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 each of the Vanguard® Investor Index Funds based on historical data. Usually, the higher the potential return the greater the level of risk you will need to undertake.
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.
LifeStrategy diversified options
Sector investment options
