Trading at a premium?, page-7

Hi @cutty ,

I see where you are coming from. Once LICs get to the size of Argo (AFI etc..) they do converge asymptotically towards index funds in terms of their spread and structure.

The difference for me is in a couple of areas:

I'm happy to pay a small premium to NAV for the liquidity of being a market traded stock rather than investing in a fund. Further, It's highly likely that if I ever decide to sell, it'll be at a premium to NAV just as it was when I bought. I also watch the NTA announcements, and will opportunistically buy when I think it the stock is being offered at a discount. LICs like ARG also have div re-investments schemes which for a relatively young bloke like me are great; I don't need the divs at this point in my life, so the effect of compounding them back into the  my investment is a no brainer for me - while still maintaining a diversified portfolio (by proxy at least).

So the TLDR; liquid - div reinvestment - diversified - consistent premium at either buy or sell. All worth the small premium for a small retail holder like myself.

AS always DYOR blah blah blah, I'm an idiot just like the rest of us...