What is a managed fund?
A managed fund is a professionally managed investment portfolio. In a managed fund, the investments of individual investors are pooled together with other customers.
A team of professional investment managers then invest the pooled money, often across a range of asset classes.
When you invest in a managed fund you purchase units in the fund rather than the assets directly. The number of units you own in a managed fund depends on the amount of money you invest and the value of each individual unit at the time of purchase. The unit price will fluctuate along with the market.
What are the top 6 benefits of investing in a managed fund?
1. It's not as expensive as you may think
We have a range of funds that require as little as $1,000 to invest.
2. Diversification
Managed funds can hold up to several hundred different investment types. These investments can be diversified across countries, asset classes (e.g. shares, property, bonds, cash), industries and companies. This way, you are automatically diversifying your investment. A “diverse” portfolio can reduce the impact of fluctuations in an investment’s market value.
3. Access to a broad range of investments you otherwise may not have access to
By pooling your money with other investors, you also gain access to a variety of investments that you may have not been able to invest in as an individual.
You can gain access to markets and strategies that rely on larger scale buying power. For example, the commercial money market will not give access to an investor who has less than $1 million. As a private investor you can access this market through your managed fund.
4. Having experienced investment managers looking after your money
Fund managers are experienced and qualified professionals who specialise in the selection and maintenance of investments. Sandhurst Trustees has over 100 years of combined expertise within our Fund Management team. The team has extensive contacts outside the company and access to detailed information. This, combined with in-house expertise, allows them to make informed timely decisions on your behalf.
The team is in constant touch with the markets in which they invest (or they engage other expert Fund Managers). This gives you the advantage of being able to invest in markets or sectors where you have little or no experience.
5. Opportunity to make regular contributions to your investment
Most of our funds offer the convenience of a regular savings plan so you can add to your investment on a regular basis. By purchasing additional units with a regular savings plan, you should end up paying less per unit over time. This is called ‘dollar cost averaging’, and it takes into account that while some units will be purchased at a higher price (meaning you’ll purchase less units at these times) others will be purchased at a lower price (meaning you’ll buy more units).
6. Benefits of compounding effect
In addition to a regular savings plan, reinvesting any income earned back into your principal investment will compound your investment. This can lead to a higher investment balance on which to earn more income in the future.
Want to invest but don’t have the money? You can borrow to invest.
