Learn more about Managed Funds

Managed funds are investment pools managed by experts, and allow investors to combine funds.
The main types of managed funds are retail managed funds, ETFs, listed investment companies and model portfolios.
You can transact with a managed fund directly, through your financial adviser or stockbroker, or through a platform.
Managed funds are managed by responsible entities, investment managers, consultants, custodians and administration companies.
The more fees you pay, the higher your investment returns must be to make up for them.
Most managed funds are unit trusts. When you invest into the managed fund you are really buying a share of the unit trust, meaning you are buying units in it.
You must declare income you receive from your managed fund in your annual taxation assessment, so it can be taxed at your marginal tax rate.
Managed funds in Australia evolved out of the trust structures started by friendly societies.
The main asset classes are shares, property, bonds and cash, with different risks and returns.
Diversification is when you mix different asset classes into your portfolio to manage your investment risk. Different asset classes have different expected investment returns and risks. Using these characteristics, managed fund portfolio managers can ...
Australian shares are the most popular asset class for investors thanks to privatisations and the power of dividend imputation and franking credits. Australia's sharemarket is valued at almost $2 trillion. Investors make money from shares in two ...
Australian company shares make up approximately 2% of all company shares available around the world, so investors should consider investing in international companies to access global opportunities. Australia's sharemarket is heavily focused on financial ...
Property is all around us in the form of office buildings, factories, retail outlets, hospitals and farms. It is an attractive asset class because it has both growth and income characteristics.
Fixed income and bonds are the world's biggest asset class. Understanding how they work will help you see how they can fit into your managed funds portfolio.
Cash is an asset class that everyone thinks they understand until they have to start investing in it. Cash is physical and electronic money that you can use for transactions. When you invest in cash you may only receive an interest payment because it ...
Alternative assets are those that don't easily fit into the mainstream asset class categories like equities, bonds, property or cash. While some alternative assets are exotic and higher risk, not all are. You need to understand each alternative investment ...
Investment style is the philosophy behind the investment strategy used by your managed fund's investment manager. Investment style is the philosophy behind your investment manager's strategy. There are four main styles - value, growth, neutral and indexed.
Indexed investment management is when the managed fund's investment managers don't try to beat the market but aim to match it. Indexed investment managed funds have low costs because they don't try to beat the market but match it. The most important ...
The framework for defining the ethical investment credentials of a managed fund are known as the United Nations Principles for Responsible Investment (UN PRI). Australia has the fourth highest number of investment companies that have signed up to these ...
Managed funds that invest overseas have currency risks because when they buy their foreign assets or receive income from that asset they have to do these transactions using foreign currencies. Misjudging these currency transfers can turn a seemingly ...
Your investment risk profile is a description of what type of investor you are. This can encompass how much investment risk you are willing to take, your investment time horizon and what level of volatility (performance variability) you are prepared ...
Financial advisers are professional experts who can help you understand your investment profile, design your investment strategy and choose managed funds.
Although not as important as determining your investment objectives or the long-run asset allocation for your portfolio, choosing the best managed fund can make a real difference both in terms of likely investment returns and the fees you will pay.
After the hard work of establishing your investment goals, deciding your asset allocation and selecting your managed fund, comes the fun part: seeing how your individual investment decisions play out over time.