Managed funds pool the money of individual investors. A professional fund manager invests the combined capital across various asset classes such as shares, bonds, property, infrastructure, etc.
Managed funds are popular with investors as they make it easy to invest. One transaction can provide access to various underlying investments and diversify investment across asset classes and market sectors. They also offer access to investments that may otherwise be out of reach.
When you invest in a managed fund, you are allocated units in the fund. Each share or unit represents an equal portion of the fund’s value. In addition, you may receive regular payments, called dividends or distributions from the fund, based on the profit or income it receives from the underlying investments.
This is a Premium Content
Membership
Get Access to all the Premium Content.More than 100+ Articles, Mini Courses, Quizzes and Contests.