Our Investment
Strategy

Simple, stable & honest
is our philosophy

You’re not alone if you’ve ever looked at a financial product and been confused about what it is, if it was right for you and if there were any hidden catches or fees.

Our Wonderfund Strategy

Wonderfund makes the easiest, and simplest financial products available to children at an extremely low cost with no hidden catches.

Your Investment with Wonderfund

We invest in 2 major index funds, provided by the largest most stable provider Vanguard:

Vanguard Australian Shares Index Fund

$12B invested

Invested across in 305 of Australia’s top companies.

Performance:

Vanguard International Shares Index Fund

$15.68B invested

Invested across in 1547 of world’s top companies.

Performance:

One low fee.

Unlike the finance industry - when we go live we'll only charge a small, single management fee.

Management Fee – 0.99%

That’s it.

Unlike the major players, we don’t structure this in a confusing way with multiple charges, some of them hidden

Administration Fees

Investment Fees

Insurance Fees

Advice Fees

Exit / Withdrawal Fees

With friends and family contributing to these funds in many cases, we encourage letting them grow over your child’s life to maximise benefits and to realise the dream you had when you first signed up to Wonderfund.

Early Withdrawal

Withdrawal fee – $300

Before the account beneficiary turns 18

What's an index fund?

An index fund makes sure you don’t have all your eggs in one basket.

An index fund allows you to easily buy a share of many companies that are representative of the economy or a country. Rather than have $100 invested in one company, you have $1 invested in a 100 companies.

Direct Investing

(Trying to pick a winner)

$100 invested in Company 1

Index Fund Investing

$1 invested in a Company x 100

Are index funds a more stable investment?

Buying the whole market

An index fund gives you the ability to invest into an entire market split across major companies who have proven track records. It means if one company has a bad year, your investment doesn’t suffer. If the economy is growing overall, so is your investment, regardless of if one or two companies have a bad year.

They say you can’t beat the market

Most people, including the professionals (Including Warren Buffet) fail to outperform the major indexes as while they can win big on investing into a specific company, they can also lose big. Index funds reduce that risk and smooth out these highs and lows which is why they are a popular choice with regular investors.

Low Complexity

When investing for your children, you don’t need high risk and high complexity as over time simple and stable wins out in most cases. It’s always the best option to invest only in things you understand and index funds are a great place to start.

Passive Investment with Lower Fees

Because of their simple strategy, overheads on these funds are low, which means lower fees for you compared to other investment options. They are perfect to remain in the background working silently without any intervention from yourself other than withdrawing your money or investing more.