Platforms - Wraps, page-8

Question for the people...

One of the draw factors (for me) for using an investment wrap (like Netwealth) is access to numerous managed funds (wholesale funds) for a buy in price of only $100. It essentially opens up some of the most sought after wholesale funds at a price I can afford...

My question is... has anyone utilised a platform like Netwealth to invest (lets say $25,000 for this scenario) in a vast array of managed funds? I don't mean three or four... I am talking about spreading your buy in across say 30-40 of the top funds across all sectors. I know this seems excessive, however I am just interested to know if anyone has taken this approach.

The fees attached to using a platform are a major disincentive/downside. However, if you are willing to pay the .49% and annual fee of $175 (Netwealth Wealth Accelerator Plus)... then why wouldn't you spread your money amongst as many managed funds as you like? You are already paying a hefty fee for administration and handling... Doesn't it make sense to take advantage of the platform, and the combined tax statement for all funds held. Granted, without this, investing in so many funds would be an administrative/tax nightmare.

The only reason I ask is, I have always had a list of the top 50 funds (my own personal opinion) across all major sectors. I have always been at pains to narrow down which funds to invest in; or the buy in price has been out of reach. The thought was, why not invest a smaller amount in all of them (through a platform) spreading my funds across a vast array of managers, risk categories and sectors. Kind of like the ultimate multi asset managed fund.

I am not an expert by any means, and there could be a fundamental reason why you would never spread an investment over so many different managed funds... It is, admittedly, taking diversification to a whole new level.

However, I am keen to know if anyone has taken a list of all the funds they rate highly and used a platform, and the low buy in opportunity, to invest in a large range of funds rather than just one or a few.

I am aware of the doubling up of fees... that is, fees payable to the platform provider and fees payable to the respective managed funds. However, if you are going to use a platform to invest in a managed fund this is a given. It doesn't matter if you invest in one fund or hundreds of funds, right?

Out of interest, I did ask this question to Netwealth... and their response was there is nothing preventing this and just re-affirmed the minimum buy in per fund is $100...

So... has anyone used a platform to spread their money across numerous managed funds (over 20 for instance)? And to be clear, I mean someone who had like $25,000. Has anyone, instead of putting all your money into one fund, spread it across numerous funds through a platform?

If I am missing something... vital... I am sorry.

Just curious.

Thanks,