Managed funds allow you to pool your money with other investors into a fund of your choice. Because of the larger pool of money, you are able to access investments you would otherwise not have access to.
Managed funds are an easy way to invest in the share market without needing to do your own research. Firstly, you benefit from the skills and experience of professional fund managers who do the research and manage your investments for you. Fund managers allocate money into the shares they consider to be the best value and continually monitor those investments – saving you time and effort.
Managed funds can offer you a wide range of investment choices. The whole range of asset classes is available – Australian shares, international shares, property, fixed interest or cash. You can choose to invest in one asset class or all via a balanced fund.Investing in shares via managed funds also ensures your investments are diversified, as these fund managers spread your money across a range of investments. Diversification spreads your risk and minimises the effect that one poorly performing type of investment may have on the returns from your entire investment portfolio.
Investing in managed funds rather than direct shares saves you time, paperwork and the need to conduct considerable, ongoing research to ensure your investments continue to work towards achieving your short and long term goals.
A financial adviser can work with you to determine your goals, give you more information on managed funds and help you decide which managed funds may be the most appropriate for your circumstances.