Is AFIC A Good Way To Invest In Australian Shares?
๐๐๐$Australian Foundation(AFI.AU)$ is the oldest and largest Licensed Investment Company (LIC) in Australia established since 1928 and has AUD 8.8 billion in market capitalisation.
AFI was around even before ETFs were traded in the markets. For those who are new to LICs, they are closed ended funds. This means that they issue a fixed number of shares that trade on the ASX in contrast to ETFs which are open ended.
AFI is actively managed with a laser focus on a diversified portfolio of Australian equities. It seeks to provide an attractive income and capital growth to shareholders over the medium to long term. This is achieved at a low cost, with lower volatility than the market and with low portfolio turnover.
The current expense ratio is 0.14% with no additional fees. The Top 10 holdings include $BHP GROUP LTD(BHP.AU)$
Commonwealth Bank, CSL, Macquarie Group, Transurban Group, Wesfarmers, National Australia Bank, Westpac Banking, Woolworths Group and James Hardie Industries.
The current dividend yield is 3.5%. AFI is going ex dividend on 11 August 2023. A dividend of 0.14 cents will be paid on 1 September 2023.
Performance wise, AFI is down 3% year to date. It is also trading at a slight discount to its Net Tangible Asset of AUD 7.19 per share versus AUD 7.17 at its last closing price.
$Australian Foundation(AFI.AU)$ is a low cost way to invest in the Australian market and provides a good diversification with 60 to 80 share holdings. It minimises my risk on investing on single stocks so even if there is negative news impacting one, the effect is minimal.
$Australian Foundation(AFI.AU)$ is a slow and steady kind of investment, if a little boring but its excellent track record of 95 years has proven that it is resilient and will be around for a long, long time.
As Charlie Munger who will be 100 years old this year likes to say - The Big Money is not in the Buying and Selling, but in the Waiting.
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I think AFI should be picked up as my first try in Australia stock. Thanks for your recommendation
i prefer the passage in last picture. in the meanwhile, your article is also have equal feelings in my heart.
Australia stock, i have ever never enter into other foreign stocks apart from US, Singapore, it is worthy of tasting๐