Managed Funds

Investing in a Managed Fund enables you to invest in a broad range of assets – even if you only have limited funds available.

A Managed Fund is essentially a managed investment scheme. In it, your funds are pooled with others, enabling you to share in investing in assets that might not be available to you as an individual.

Each Managed Fund has a different mix of underlying assets in which the funds are invested. For example, one Managed Fund may have a larger proportion invested in defensive style assets (such as cash and fixed interest assets) whereas another may be more weighted towards growth assets (such as property and shares).  This enables you to choose a Managed Fund that best aligns with how comfortable you are with different levels of risk and your investment time frame.

An advantage with a Managed Fund is that you can generally make regular contributions, and there can be less paperwork involved, particularly at tax time.

There are two broad categories of Managed Funds: actively managed funds and passive investment funds. Like the names suggest, an actively managed fund is where the fund manager aims to outperform the market by frequently buying and selling investments that they think will offer a stronger return. Conversely, a passive investment fund (for example, an index fund) is designed to match market performance.

As with any investment decision, it’s vital of course to consider the fees you are charged, the skills of the people who are looking after the Managed Fund and how accessible your funds are if you ever wanted to make a withdrawal.

Contact us today and we can refer you to a Financial Planner.