MFG 0.71% $9.92 magellan financial group limited

Is the cash component of a fund (up to 50% for some Magellan...

  1. 1,750 Posts.
    lightbulb Created with Sketch. 403
    Is the cash component of a fund (up to 50% for some Magellan funds) factored in when compared to the returns of a fully invested Index ETF? The cash component of a managed fund offers investors a bit of risk mitigation and wisdom albeit with a management fee. What value should be placed on this investment attribute when compared to index investing? It certainly hasn't worked in the past but what about the future as markets are tipped to change from growth to value.
 
watchlist Created with Sketch. Add MFG (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.