There are various kinds of funds that you can invest in. You could choose to manage your own funds or you may choose to have a fund manager. There are funds managed by banks, financial services companies, independent fund managers and there are special investment schemes designed by various institutions. You may invest in stocks, indices, specific commodities, foreign exchange or you can choose mutual funds and other types of managed or unmanaged funds. Most funds can be classified as active or passive funds. There are similarities between active and passive funds but it is the difference that calls for attention.

Active Funds: Explained!

Imagine a particular amount that you wish to invest in and pick an index of your choice. You could choose any index of any country. You may also choose global indices. If the fund you choose to invest in is managed by an expert and he or she tends to make manoeuvres from time to time, such as buying and selling or even withholding or future trading, to make you more money than you would make normally, then it is classified as an active fund. Active funds are managed to facilitate more profits than what you would make if you didn’t touch the fund and allowed the investments to bear the returns by default. Active funds are designed to predict the markets and respond or proactively take a step to make more money.

While active funds can make you more money, it is not always assured to get you higher returns.

Passive Funds: Explained!

When you choose a fund that doesn’t require a fund manager or even your involvement to proactively buy and sell, withhold or trade in futures, it is a passive fund. The fund remains untouched and appreciate as the index or the specific stock appreciates. If the index or stock depreciates, then the fund will depreciate. With most passive funds, the associated costs are very low and also demand less attention. You can choose passive funds but your investment may not have a staggering chance of earning you a fortune overnight.


You shouldn’t approach financial planning unless you understand the type of personality you have. We aren’t talking about your personal or professional attributes. Every person has a certain personality when it comes to money matters. There are six money type personalities.


  1. There’s the enthusiast. The enthusiast is a person who is proactive with his or her finances. Most enthusiasts will have a financial plan in place, would know where to put in how much money, how to make smart investments and will be financially informed and confident. The enthusiast is decisive. It is estimated that less than 14% of all working Aussies are enthusiasts and they are mostly men. These people have more than one third of the personal wealth of adult Aussies.
  2. Then there’s the delegator. You could equate the delegator and the enthusiast but they differ in one key aspect. Delegators don’t really delve into the money matters themselves. They are proactive and want to be financially empowered but lack the knowledge and confidence to get things done without any help. Delegators would always get some advice and may even hand over the money for a professional to manage. That is not an unwise thing to do when one lacks knowledge and may end up making poor choices. The purpose is to end up with substantial wealth, legally and it does not matter if you are getting someone to manage your money.
  3. The third money type personality is the avoider. The avoider will find some way or the other to avoid financial planning, he or she would not see a planner, not get any advice and even if someone gives them sane unsolicited advice, it would fall on deaf ears. More than one fifth of the working populace in Australia is of avoiders. Not surprisingly, they have less than 10% of the personal wealth of working Aussies.
  4. You could be a conservative DIY. There are many young and old people who don’t want to hire a financial planner, who don’t wish to tread the same line that has been tread for decades and would rather have their own way to getting things done. A conservative DIY would do all the research, indulge in the legwork, assess all options and make decisions pertaining to savings and investments. Conservative DIY usually does well and they are typically medium to high net worth individuals.
  5. You could be a player if you like the scintillating world of stock markets, shares, commodities and myriad kinds of trading. Being a player is not necessarily a bad thing if you can use the tides in your favour. Again, the objective is to amass wealth.
  6. The sixth money type personality is too busy. These people may have all the right intentions but do nothing about. They procrastinate and suddenly it is old age and nothing more can be done.

Through YFG Lending, you will have the opportunity to secure the application form you require. In the end, you want to make sure that when you are applying for a loan, you are going to go to a reliable source. At the same time, you also want to make sure that you are fully aware of what you are doing, as well as what is going to be required of you. These are a few things to keep in mind.

In terms of getting the loan you want, there are several things you are going to need to do, in order to succeed at getting exactly what you require.

How To Get The Loan You Need

The loan application experience can be different for everyone. Perhaps you are seeking a loan for your first home, or you are looking to refinance your current home loan, or maybe you are interested in obtaining an investment property.

The first thing you will want to do is determine the loan amount you require. You don’t want to borrow too much, and you certainly don’t want to borrow too little. Figure out how much you can comfortably stand to borrow.

Knowing the purpose of the loan can also go a long way towards helping you to find a loan with terms and values that are right for you. You will certainly need to work out your loan type, as well. This is going to involve looking at such possibilities as fixed mortgage loan, variable mortgage loans, a low doc loan, or an introductory rate. – but the Specialist lending consultants at YFG Lending can assist you with this detail, knowing the ins and outs of each!

It is also key to know what lenders are looking for in borrowers. Many of the top lenders are looking for individuals between the ages thirty and forty-five. Another strong selling point is if you have strong residential histories, have maintained a job for more than a couple of years, and enjoy a strong, consistent base salary. Just remember! - proof of income will be one part of your loan process.

If you are a new customer to the lending avenue you have chosen, you may need to bring some additional documents with you. These documents can include passports, Australian driver/firearm license, and your proof of age card. Additional documents might be required, and there are certain substitutions allowed, as well.

Make sure you study up on the loan features that will define each of your loan packages, but be sure to consult your YFG Lending Specialist lending consultant today!