Managed funds are a way for investors to easily diversify their portfolio – they are collective investment schemes to pool together the financial power of their investor group to purchase a variety of securities. Managed funds are generally invested in a variety of shares, property and bonds within one specific industry or sector. When you invest in managed funds, you are granted units that diversify your investment dollars into all the components of a particular managed fund.
Who Invests in Managed Funds?
Novices looking to partake in a more sophisticated investment strategy may enjoy participating in a managed fund. For very little money, those looking to broaden their investment portfolio options can enter the managed fund market. Managed funds are overseen by professionals whose goal is to make their funds outperform industry indexes. Investors who want to make the leap into managed fund investments can invest in their favorite sector or research and find alternative methods for selecting their investment options.
More Stock Access
When individuals invest in managed funds, they receive “units” in lieu of their cash. These units provide the investor access to industries where prices would normally be out of reach. By utilizing managed funds in your investment portfolio, you will get a mix of companies, asset classes and fund managers.
There are thousands of different managed funds you can choose from. If you are thinking of diversifying your portfolio with an assortment of securities (both secured and unsecured), shares, stocks and property offered in a managed fund, it is crucial that you spend the time reviewing the prospectus regarding the specific investment. Remember, just because a managed fund performed well in the past, their future rate of success is not guaranteed and there are always risks.