What is a managed fund?
A managed fund is a professionally managed investment portfolio that pools your money together with the money of multiple investors. An Investment Manager then buys and sells shares or other assets (property, cash, bonds etc) on your behalf. 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 7 benefits of investing in a managed fund?
1. Its not as expensive as what you may think
We have a range of funds that require as little as $500 to invest
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. Visit <risk vs return> to learn more about risk.
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, allow 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).
7. 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.
Where do I start?
Investing can help you reach your financial goals sooner but can be overwhelming sometimes. We’re here to help simplify the process and help you get started.
Types of investment
When you start looking into investing, you will see a lot of different terms being used. You may commonly see the term ‘asset classes’ which can be further broken down into income assets and growth assets.
Risk vs return
All investments carry risk – even investing in cash. Market conditions, inflation, changes to interest rates and economic downturns can all have an impact on your investment.
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. Each of these companies receive remuneration on the issue of the product or service they provide. Sandhurst is the responsible entity and issuer of the managed funds available on this website, and is also the trustee and issuer of the Bendigo superannuation products. Investments in these products are not deposits with, guaranteed by, or liabilities of Bendigo and Adelaide Bank and are subject to normal investment risk, including possible delays in repayment and loss of income and capital invested. Before making an investment decision in relation to one of these products you should consider your situation and read the relevant Product Disclosure Statement available on this site.
Sandhurst is the issuer of the commercial lending products and the provider of any traditional trustee services available on this website. The Bendigo Funeral Bond (“the Bond”) is an investment product issued by Australian Friendly Society Limited (“the Society”), ABN 29 087 648 851 AFSL 247028, with benefits provided by the Society’s Funeral Benefit Fund established under Schedule 1, Rule E of its constitution and administered by Sandhurst. The Travel Protection Plan is issued by AIA Australia Limited ABN 79 004 837 861 AFSL 230043. The Society is associated with the Bank and its related entities. Neither the Bank nor any of its related entities guarantee the repayment of capital invested or the investment performance of the Bond. Information is correct at the date of this document and is subject to change.
The content on this website has been jointly prepared by Sandhurst and Bendigo and Adelaide Bank and contains general advice only. Advice in relation to superannuation and managed investment schemes is provided by Sandhurst and advice in relation to life risk insurance is provided by Bendigo and Adelaide Bank. It is provided as general information and must not be relied upon as a substitute for financial planning, legal, tax or other professional advice. 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. The information contained on this website is subject to change without notice. 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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