The fixed deposit rate for AUD is very low (around 0.6-1%). And therefore, the alternative is to buy a bond fund that has a higher yield (between 8 to 10%).
Also over 5 years as you did is not that favourable to ALLGAME. But over 3 years looks quite different. Again, this just supports my earlier point that you can pick whatever date range you want to support whatever argument you want to make.
I tend to look at the longest possible chart I can find - ideally through 1 or 2 serious downturns in the market.
I have no opinion on either the fund or the ETF in that chart.
Regarding fees, yes funds have 1% upfront purchase fee, but they have no selling fee. In comparision, if you are buying regular stocks, ETF, etc, they normally have brokerage fees around 0.3% on both buy and sell side, so total 0.6%. So yes funds have higher entrance/exit fees in total, but not a huge difference.
Also for ongoing fees, yes funds have around 1% to 1.5%, but ETF's etc also have fees, for 3141 is 0.35%.
Also something else to consider. Every time I receive a dividend from stocks/ETF's, I have to pay $30 dividend handling fee or whatever it is. With funds, there are zero fees here. So if I invest $1m in 10 different stocks paying 5% dividend twice a year, I receive $50,000 dividend per year but have to pay fees $600 which is 1.2% of my dividend in fees. If I buy $1m in funds, I get my $50,000 dividend with no fees. So there you go, something where funds actually have lower fees than stocks/ETF's!!
As I said before, I have a bit of everything and I can see the pro's and con's of all.
technically you can get leverage for ETFs as well... check with the bankers... i am sure the private banks allow that..
Also, on returns funds will always, on average, look better on shorter time frames and worse and worse the longer you compare them to passive. That's the impact of fee's and one part of why ALLGAME looks less bad over three compared to five years. Once it huts ten years it will look even worse.
I had Value Partner High Yield Bond Fund. I wonder when to sell as the market is kind of unclear in China. If I sell this fund what should I buy? Please give some advice.