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Why invest in a managed fund

Education HUB article

10 minute read

What is a managed fund?

A managed fund is a professionally managed investment portfolio. In a managed fund, the investments of individual investors are pooled together with other customers. 

A team of professional investment managers then invest the pooled money, often across a range of asset classes.

When you invest in a managed fund you purchase units in the fund rather than the assets directly. The number of units you own in a managed fund depends on the amount of money you invest and the value of each individual unit at the time of purchase. The unit price will fluctuate along with the market.


What are the top 6 benefits of investing in a managed fund?


1. It's not as expensive as you may think

We have a range of funds that require as little as $500 to invest.


2. Diversification

Managed funds can hold up to several hundred different investment types. These investments can be diversified across countries, asset classes (e.g. shares, property, bonds, cash), industries and companies. This way, you are automatically diversifying your investment. A “diverse” portfolio can reduce the impact of fluctuations in an investment’s market value. 


3. Access to a broad range of investments you otherwise may not have access to

By pooling your money with other investors, you also gain access to a variety of investments that you may have not been able to invest in as an individual.

You can gain access to markets and strategies that rely on larger scale buying power. For example, the commercial money market will not give access to an investor who has less than $1 million. As a private investor you can access this market through your managed fund.


4. Having experienced investment managers looking after your money

Fund managers are experienced and qualified professionals who specialise in the selection and maintenance of investments. Sandhurst Trustees has over 100 years of combined expertise within our Fund Management team. The team has extensive contacts outside the company and access to detailed information. This, combined with in-house expertise, allows them to make informed timely decisions on your behalf.

The team is in constant touch with the markets in which they invest (or they engage other expert Fund Managers). This gives you the advantage of being able to invest in markets or sectors where you have little or no experience.


5. Opportunity to make regular contributions to your investment

Most of our funds offer the convenience of a regular savings plan so you can add to your investment on a regular basis. By purchasing additional units with a regular savings plan, you should end up paying less per unit over time. This is called ‘dollar cost averaging’, and it takes into account that while some units will be purchased at a higher price (meaning you’ll purchase less units at these times) others will be purchased at a lower price (meaning you’ll buy more units).


6. Benefits of compounding effect

In addition to a regular savings plan, reinvesting any income earned back into your principal investment will compound your investment. This can lead to a higher investment balance on which to earn more income in the future.


Want to invest but don’t have the money? You can borrow to invest.


A Wealth specialist can help guide you. Make an enquiry today. 

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Things you should know

Sandhurst Trustees

Sandhurst Trustees Limited ABN 16 004 030 737 AFSL 237906 (Sandhurst) is a wholly owned subsidiary of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879. Sandhurst is the responsible entity and issuer of the managed funds available on this website. Additionally, Sandhurst is the issuer of commercial lending products and the provider of traditional trustee services available on this website. Each of these companies receives remuneration on the issue of the product or service they provide. Investments in these products are not deposits with, guaranteed by, or liabilities of Bendigo and Adelaide Bank nor any of its related entities, and are subject to normal investment risk, including possible delays in repayment and loss of income and capital invested.

Information on the website is jointly prepared by Sandhurst and Bendigo and Adelaide Bank and subject to change without notice. Advice in relation to managed funds and commercial lending products is provided by Sandhurst. The information contains general advice only and does not take into account your personal objectives, situation or needs. Before making an investment decision in relation to these products you should consider your situation and read the relevant Product Disclosure Statement available on this site.

The information is given in good faith and has been derived from sources believed to be accurate at its issue date. Neither Sandhurst nor the Bendigo and Adelaide Bank give any warranty for the reliability or accuracy or accept any responsibility arising in any way, including by reason of negligence for errors or omissions for the information contained on this website. Neither Sandhurst nor the Bendigo and Adelaide Bank has an obligation to update, modify or amend this website or notify you in the event that a matter of opinion or projection stated changes or subsequently becomes inaccurate.

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Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL / Australian Credit Licence 237879. Any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable Disclosure Documents before acquiring any product described on this website. Please also review our Financial Services Guide (FSG) before accessing information on this website. Information on this page can change without notice to you.

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