What is a managed investment?
Introducing funds management to the new investor
Everyone needs to invest - for retirement, to educate children or simply to build wealth for a better future. The big decision is whether you should do it yourself and accept all of the responsibility for buying investments, or invest in a managed investment where an experienced fund manager decides which investments to buy.
Managed investments, also known as managed funds or unit trusts, allow you to pool your money with that of many other investors so you can invest in assets that may not ordinarily be available to individuals - like global companies, international government bonds or commercial property.
Managed investments allow you to benefit from:
Diversification - spreading your money over a number of different types of investment (shares, property, fixed interest securities and cash) reduces risk. You could think of it as 'not putting all your eggs in one basket'.
Professional management - managed investments allow you to 'employ' a team of investment professionals who conduct extensive ongoing research into the financial performance of individual companies and specific securities, taking into account economic and market trends. The analysis of this information forms the basis for the buy and sell decisions of your fund.
Risk management - not only does a managed investment take away the onus of monitoring world markets and looking for new investment opportunities, our fund managers will actively monitor developments in currency markets and make adjustments to minimise risk.
With managed investments you can use funds to tailor your own portfolio and create flexible investment solutions to meet your needs.