Managed Funds. What Are They?

A managed fund is merely a way of investing so that you don’t have to make any decisions. You pay someone else to make all of the investment decisions. How do they work?  The fund manager merely pools your money with other investors and then goes and buys shares on the Australian or International stock market. It is the fund manager who decides what and when to buy and sell the shares.

Who do they suit?
1. People with small to medium amount to invest. Anything from $5,000 to $200,000.
2. People who are very busy and do not have the time to review their investment regularly.
3. People who do not understand the stock market or basics of investing.
4. People who would like to make small regular contributions to their investments as little as $100 per month.

Benefits of Managed funds
1. Diversification, you can invest as little as $5,000 and have exposure to 40 different companies.
2. You can make small regular contributions as small as $100 per month. The minimum to buy shares on market is $500.
3. Lots of different funds to choose from, everything from Blue chip Australian share funds, geared funds, small cap fund, index funds to China and India funds.
4. You can obtain overseas exposure cheaply.

A financial planner such as Andrea will help you chose the funds which suit you and keep you up to date on the funds.

If you would like to know more about managed funds contact us on 4771 4577.