What are Managed Funds?
Managed funds pool money from multiple investors to create a diversified portfolio managed by professional fund managers. This approach provides access to a wide range of investments that might be difficult or expensive to access individually.
By investing in managed funds, you benefit from professional portfolio management, instant diversification, and access to investment opportunities that may require significant capital or expertise to access directly.
Benefits of Managed Funds
- Professional Management: Experienced fund managers make investment decisions
- Diversification: Automatic diversification across many investments
- Accessibility: Invest in markets and assets that may be difficult to access directly
- Convenience: No need to research and select individual investments
- Liquidity: Generally easy to buy and sell fund units
- Cost-Effective: Lower transaction costs through pooled investments
Types of Managed Funds
Equity Funds
Invest primarily in stocks, offering growth potential with varying risk levels:
- Australian equity funds
- International equity funds
- Sector-specific funds (technology, healthcare, resources)
- Index funds and ETFs
Fixed Income Funds
Invest in bonds and other fixed-income securities for stable income:
- Government bond funds
- Corporate bond funds
- International bond funds
Balanced Funds
Mix of equities and fixed income for balanced risk and return:
- Conservative balanced funds
- Moderate balanced funds
- Growth balanced funds
Alternative Investment Funds
Specialized strategies including:
- Property funds
- Infrastructure funds
- Commodity funds
- Hedge fund strategies
How Managed Funds Work
- Investment: You purchase units in the fund
- Pooling: Your money is pooled with other investors
- Management: Professional fund managers invest the pooled capital
- Returns: Returns are distributed to investors based on their unit holdings
- Redemption: You can sell your units back to the fund
Fees and Costs
Managed funds typically charge:
- Management Fee: Annual fee based on fund value (usually 0.5% - 2%)
- Performance Fee: Some funds charge a fee based on performance
- Buy/Sell Spread: Small fee when buying or selling units
For detailed fee information, please refer to our fees page.
Choosing the Right Fund
Selecting the right managed fund depends on:
- Your investment goals and time horizon
- Your risk tolerance
- Fund performance history
- Fund manager experience and track record
- Fees and costs
Our advisors can help you select funds that align with your investment objectives.