Why Choose Managed Funds?
A managed fund is one example of a managed investment scheme, whereby your money is pooled together with other investors and an investment manager then buys and sells shares or other assets on your behalf. The advantage that a managed fund can offer is diversifying risk across your investment portfolio, which can limit your exposure and investment falling due to market volatility. Additionally, you have an expert fund manager, who has comprehensive knowledge and access to the relevant market information and research, managing your investment effectively. Another benefit of a managed fund is the ability to contribute regular payments to the investment; in addition to reinvesting the fund’s distributions, this could also compound the investment returns. Depending on your investment time frame, what your financial goals are and what your risk profile suggests, these parameters will assist a financial adviser to determine which managed fund is applicable for your financial plan.
Below is an example scenario of a high growth plus client with an initial investment of $20,000. This involves monthly deposits of $200 per month, invested in a range of Australian, International and Property funds. Keep in mind, this scenario is only a prediction based on past performance data. Past performance of funds is not always a future indicator, but is suitable for this context. This prediction shows that over 15 years, a $20 000 investment could grow to approximately $104 000. These financial gains could be beneficial for assisting in future education costs for children, a house deposit or a family holiday, all examples of what money generated from a Managed fund can be utilised for.
If you have any questions about managed funds or would like to find out more, please contact us.