Question: Charlie Aitken wrote enthusiastically about MAFIA stocks. Is there an ETF that would allow me exposure to this group? Will the new Switzer Growth Fund have exposure?
Thanks for your advice in anticipation. I find it is always so considered.
Answer (by Paul Rickard): If you are interested in the MAFIA stocks, the most direct way to invest is to buy these stocks through one of the brokers. Both Nabtrade and CommSec offer international share trading accounts – and they are very easy to use.
A less direct (and imperfect way) to gain exposure is to invest in Betashare’s Exchange Traded Fund that tracks the NASDAQ 100 – ASX Code NDQ.
The Switzer Dividend Growth Fund only invests in Australian shares and won’t have exposure to these companies.
Question: I am a Switzer subscriber. I am in my late seventies and manage my own SMSF. I bought my WOW at $6 many years ago. Would now like to sell them and buy back again. Could you tell me if the tax office is going to frown on this or not?
Answer (by Paul Rickard): If the shares are held in your SMSF and support the payment of a pension, then there shouldn’t be any CGT to pay.
If the shares are held personally, then you may have to pay CGT. You will be eligible for a 50% discount, as you will have held them for more than 12 months.
Generally, the ATO doesn’t have an issue with an entity realising a capital gain. If you want to buy them back, I would wait a few days at least so that there is an argument that you made an economic decision for the investment.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
