Managed funds work by pooling investors' money together and buying a large number of different assets (which may include shares, property, bonds and fixed interest).
Professional fund managers decide what percentage of the fund should be invested in each asset class, and also which countries, industries and stocks have the best prospects for good returns.
Each investor then receives "units" in the fund, with each unit representing a mix of all the underlying assets.
There is a wide range of different types of managed funds available – some offer access to one or two asset classes, and others offer a mix of everything. Some managed funds also allow you to mix the actual fund managers that select and maintain the underlying investments.
The specific investment style and process of each fund is outlined in its Product Disclosure Statement (PDS).
Managed funds are an ideal option for people who are:
- New to investing
- Happy to outsource the selection of investments to professional manager/s
- Have a small initial amount to invest (with the option to make regular additional contributions)
- Seeking investment diversification to minimise risk
To speak to one of our financial services team member regarding managed funds, please contact our office.
*Alpha Consulting Group (FP) Pty Ltd offers financial advice as an Authorised Representative of Count Financial Limited ABN 19 001 974 625, Australian Financial Services Licence Number 227232 ("Count") using Count's Approved Product List. Count is a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Please note that any taxation and accounting services are not endorsed nor the responsibility of Count Financial Limited.