December Index Fund Performance

A quick follow up post to my original on My Experiences with the Concept of Dollar Cost Averaging and my current continual investment in the Vanguard Australian Shares Index Fund.

This month in December the fund had improved performance compared to the month of November.

A nice rally to end of the year as shown in the graph above and slowly starting to creep up to the starting balance of 2015. Essentially saying the ASX 300 went no where but with dividends I've still managed a decent rate of return for an investment that I'm only sitting back and providing automated payments. With the rate of return now climbing to below 10% for the first time, perhaps the dollar average investment approach one is starting to pay off. I'll be interested to see what happens over the next year in 2016 and if the "end of the GFC" for the US market has any affect on the performance of this investment. The rate hike occurred on the 17th of December and as shown below there was a substantial reaction from the market.

I'll continue to update this on a monthly period to see whether the whole concept of investing into an index fund long term at regular intervals works.