What Do You Need To Know

How Does Forex Compare To Other Investment Options?

There are two main areas you need to understand with Forex, to sensibly compare it to other investments: 1. Risk and 2. Returns.

I’ll cover Risk with you in the next page, and show you how “Forex being risky” is a misunderstood term. 

First I’d like to take a moment to look at Returns with you.

Now: if you’ve looked at Forex before, you may have heard of hundreds of percent returns, or 70-80% returns each year through Forex.

Whilst these types of numbers are achievable, the risk that comes with those high numbers is exponentially higher, and not acceptable here at JAS Funds.

We’ve heard of investors being promised those high figures, and within a few months, have LOST 50-60% of their account. 

That’s not how we work.

I’ll cover this in more detail in the Risk section next, but please understand that the figures I’ll show you below, as comparisons of Forex with other investment options, have been taken from the JAS Fund conservative approach to Forex account growth, and all the figures quoted are taken from our latest results.

The Comparison List:
Forex vs… 

– SMSF Funds (see tab below)

– Kiwisaver (see tab below)

– Property (research underway)

– The Share Market (research underway)

– The Banks (research underway)

Choose the relevant tab to learn more:

“Large funds outperform over the long term, on average”

The headline above is taken from a 10 year study compiled by the ATO (Australian Tax Office).
The ATO looked at the average annual return over the 10-year period to June 2016.
The study found “the recent outperformance by the large fund sector is now prevailing over the longer term.”
That sounds really good.
But let’s look at the actual performance of these large ‘outperforming’ funds:
  • 4.87% a year, for SMSFs
  • 5.01% a year, for large super funds.
Note: For the 2016 financial year, SMSFs matched the performance of the large super funds, both delivering 2.9% for the 2015/2016 year, according to the ATO.
Important: When comparing the annual compound earnings rate over the 10-year period the performance of SMSFs (5.16% a year) is nearly identical to the performance of large super funds (5.18%).”
So what the ATO are telling us is:
a. If you manage your own Super Fund yourself, you’ll likely put in a lot of hours and effort, and match the large providers in the sector
b. the year-on-year performance is 50% less of what JAS Funds has achieved so far.
Looking at more detail for you:
The year by year comparison:
The above is courtesy of the ATO.
Here at JAS Funds, we also have access to an advisor only tool – 
Fund Visualiser – giving access to all the funds so a financial advisor can advise his or her clients.
This is a screenshot from the system, showing the top three recommendations: 
The “best performer” is 6.28% over 3 years, 0.79% YTD and 7.73% in the last 1 year.
But that doesn’t tell the whole story, and doesn’t have the fees built into the performance – this view does: 
And returns versus category (ie versus their competitors) is: 
So that says they’re close to their nearest competitors, but shows that the rest of the market has these similar numbers.
1.21Bn of assets in this fund – of people who are happy with “average?” – 
These types of results are exactly why we created JAS, so we could offer better returns to the investors!
$1.21Bn in the fund.
The average duration of time someone invests in this fund is 5.95 years.
If they had have chosen JAS Funds, then in the same period, comparing our results today, we would have performed more than 100% better (and that doesn’t include compounding!).
So with your SMSF:
a. you can choose to put the effort and time in to manage it yourself, and likely get the same result as a big fund
b. choose a big fund, and get approximately 5% year on year
c. learn more about JAS Funds, and how we can manage it for you
And if you have any questions about anything contained above, contact us here: Contact Us

The New Zealand government introduced Kiwisaver as a way for many New Zealanders to save.

In their own words, they say: KiwiSaver is a voluntary, work-based savings initiative to help you with your long-term saving for retirement. It’s designed to be hassle-free so it’s easy to maintain a regular savings pattern.

Whilst it’s promoted by the government, they state (and you may not know this): “KiwiSaver is not guaranteed by the Government. This means you make your investment choices in a KiwiSaver scheme at your own risk.”* 

Forsyth Barr is one of those private firms that manage almost $1 Billion of Kiwisaver funds for New Zealanders.

One of the key ‘benefits’ promoted is that it’s set and forget, but that’s also one of it’s biggest downfalls for many.


Because so many people follow the crowds, instead of basing their decisions by the numbers.

The second downside to Kiwisaver is the liquidity of your fund. It’s not available to you until you retire.

If you invest in Forex, then you can withdraw all your funds within 24 hours if needed.

Not withstanding the inaccessibility of your funds in Kiwisaver, let’s compare performance.

Forsyth Barr have kindly made available all the information of each of their Kiwisaver funds –

Here is a list of results for year ending March 2018 and comparative risk levels:

An excerpt taken from the Summer documents:

“The risk indicator is rated from 1 (low) to 7 (high). 

The rating reflects how much the value of the fund’s assets goes up and down. A higher risk generally means higher potential returns over time, but more ups and downs along the way. 

Note that even the lowest category does not mean a risk-free investment, and there are other risks that are not captured by this rating.

This risk indicator is not a guarantee of a fund’s future performance. The risk indicator is based on the returns data for the five years to 31 March 2018. 

While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator will continue to be updated in future fund updates.”

Remember this:

i. Forex is seen as a risky investment

ii. for higher risk, you expect higher rewards

iii. looking at the highest performer in Kiwisaver above, it’s comparable with JAS Funds performance and risk levels (and here at JAS Funds, we’re continually managing that risk levels to reduce our risk indicator!)

iv. with Forex, your funds are accessible within 1 working business day**

If you have any more questions about how JAS Funds would compare to Kiwisaver as your choice for investment, use the live chat box on our site, or visit our contact us page here – Contact Us

* Kiwisaver – A Summary – The New Zealand Government Website

** A small % of your funds may be allocated to open trades, those trades would need to be closed to withdraw 100% of your account, but we find with most of our clients, they can leave a % of their fund in place, and withdraw 90%+ to realise suitable gains on their account.

The two key differences with property and a managed Forex Account are:

  1. the liquidity of your money
  2. understanding the real-time value of your investment

The Liquidity

With a Forex Account, 90%*+ of your funds are accessible within one business day, whereas you can only get your funds from property when you sell, and even then it may be a protracted process.

The Real Time Value Of Your Investment

With property you know the value of your property at these stages of ownership:

a. when you buy it

b. when you have it valued

c. but the actual value, if you were to sell it, will only be what someone is willing to pay for it

In a bouyant market, this may be in your favour, but in a steady or declining market, then the buyer will be in the stronger position.

Compare that to a Forex account:

  • you can see the value of your investment up to the minute (if you wanted to)
  • you have buyers in the market every second of every day, to sell your open trades
  • both of these give you a much higher transparency in terms of the value of your investment

But What About The Other Forms Of Income With Property?

In terms of property equity growth and rental income, we’re currently compiling market comparisons and trends, from independent sources, and will put that information on this page soon.

We’ll also build into those figures the estimates of expenses of running a property (if a rental), including average vacancy rates, tax rates, depreciating assets, and loan interest rates.

All that and more will be coming shortly to this page.

But if you’d like to enquire more about how JAS Funds could fit into your portfolio, just get in touch here: Contact Us

The next step is to learn about how to Manage Risk in Forex – Let me show you how we do it here at JAS Funds:

Wholesale Check

If you’re at this page but still not sure if you’re Wholesale/Accredited/Sophisticated Investor, click here:

Learn About Risk

Let us walk you through the methodical process we use to manage the downside of risk, and the upside of profits:

Already Know This Is Right For You?

If you’ve been referred and you’re just looking to get started, then get in touch with us here: