A Managed Fund pools together the money of many investors. These pools of money are then invested in the asset classes in the proportions determined by the investment objectives established for each Fund.
Managed Funds work by pooling member’s investments in a variety of assets, such as shares, property, fixed interest and cash. When you invest in a Managed Fund, you purchase a certain number of units in that fund. These units represent a percentage of ownership of the fund’s underlying assets. The unit price is generally recalculated daily, in line with movements in the values of the underlying fund assets, taking into account any fees associated with the funds management and administration.
Returns from Managed Funds consist of both income payments from returns (e.g. profits and dividends) and capital growth in the underlying assets (e.g. increase in share price or property value).
As the name suggests, these funds are managed by experienced investment professionals. There are a number of different types of Managed Funds which can all be sourced through a MyState Financial Planner.
If you want to know whether these funds could work for you, talk to a MyState Financial Planner today.