Whether you want to invest specifically in shares or across a broad range of asset classes, managed investments can deliver a benefit which can be very hard to achieve as an individual investor - diversification. Diversification reduces your risk, and improves the consistency of your returns. As we've seen in Choosing the right investment, each asset class has a different level of risk and return associated with it.
One way of reducing
risk over short periods of time is to spread your investment over
a number of different asset classes - commonly referred to as diversification.
Managed investments can be separated into two basic types - 'balanced' funds and 'sector' funds.