Why Invest in a Managed Fund?

Managed investments, popularly referred to as managed funds, are investments which allow investors to pool their money with that of many other investors in order to access a broad range of investments managed by a professional team. There are a number of reasons why managed funds make attractive investments. The following are some of them:-

Access to a Wide Range of Investments

Pooling your money with other investments means that you have access to investments not typically affordable or available to you as an individual investor. These investments include commercial property and international shares.

Diversification

Managed funds can invest in a large number of investments across a wide range of asset classes. This results in a level of diversification that would be difficult to achieve on your own.

Funds That Suit You

There are a large number of managed funds to choose from. This means that you should be in a position to find managed funds that suit your personal financial goals.

Professional Management

Fund managers use a wide range of investment resources, processes, skills and experience to invest and manage your money on your behalf. This means that your investment will be taken care of with professional competence and due diligence.

Regular Investment Option

Most managed funds offer the convenience of a regular investment option. Regular investing makes it easier for you to achieve your investment goals with less time and effort and allows you to manage investment risk by dollar cost averaging into the market.

Low Minimum Investments

Usually, you do not need a large amount of money to start a managed investment. The initial capital outlay is normally around $2,000 to $5,000. You can therefore invest small parcels of money as they become available rather than having to wait for the big payday or when you stumble upon a large lump sum to invest.

Liquidity

Managed funds generally provide a higher level of liquidity. Liquidity in this case is the ability to turn your investment into cash. If you have invested in property for example, and you need to raise some cash, you can choose to sell part of your house to access liquid cash.

Administration and Reporting

Administration can be a burden that many people are not cognizant of until they begin investing. That’s when they get bombarded with a lot of paperwork. This can be reduced dramatically when using managed investments, as they generally supply consolidated reporting on your investment transactions and balances, and comprehensive income and capital gains tax information that make reconciliation and record keeping easy both for you and for your accountant.

 

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