When to Invest in Managed Funds

Checking accounts and savings accounts are the first steps towards building financial independence. As time goes on and more money is earned through career advancements, it becomes more important to increase the sophistication of your portfolio. If you have some extra money that you do not expect to need for a few years, you should consider managed funds.

When it comes to investment strategies there are different routes you can pursue at any given time. They are:

  • Short Term Investments- such as money market and CDs
  • Long Term Investments- including managed funds
  • Retirement Planning- along with IRAs and 401k

The managed funds route is quite attractive if you are comfortable with the risks and can survive without touching that money for several years. Managed funds offer higher returns, on average, than many other investment products. Unfortunately, the returns are not very predictable, so you can easily see a 5% or 10% drop in the very first year after you invest. Only long-term investors would be ok with such risk.

Related Video

About the Author

GOBankingRates Staff

These articles are written by the in-house GOBankingRates team.

Read More

When to Invest in Managed Funds
Close popup

Sign up for more financial tips and tricks!

Are you saving for a house? Starting to invest? Whatever your 2021 financial goals are, we can get you on the right track!

Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

Don't forget to add news@email.gobankingrates.com as a contact to ensure you receive our emails to your inbox!