Managed Funds vs. Self-Managed Investments

After taking some time to reduce your spending and accrue some savings, you have actually amassed a small but healthy financial nugget for yourself. There are so many options available to invest in and you know you can do an excellent job of investing for yourself. If however, you are choosing between managing your own money versus investing into managed funds, you need to have some acumen in the financial world and the time to manage your own portfolio.

Benefits of Managed Funds

By investing in a managed fund, you can get access to different investment instruments that you will normally be priced out of as an individual investor. Managed funds are a collective investment scheme where by you investing some money (typically a minimum of $1000), you will automatically diversify your portfolio with stocks, properties and other assets that the managed fund has invested in. You will get a unit value based on your investment that reflects a selection of investment offerings chosen by the fund manager in one field.

Benefits of Self-Management

If have accumulated a large amount of savings however, investing on your own can be more beneficial. As your own portfolio manager, you can save money on fees generally associated with managed funds. You will also be able to pick and choose whatever investment tools you like to add to your portfolio as you will not be limited by the choices of the fund manager. If you have sizable amounts of assets to invest, you can buy the stocks of your liking and get the benefits of your investment (such as attending stock meetings or getting company discounts) which are typically only available to large shareholders.

If you have the time, money and dedication to handle your own money, this would be the better option. Managing your portfolio can be very time consuming and stressful, but the freedom of control you will gain may be well worth the exchanges.