When you make an investment in a managed fund you usually receive units in that particular fund.
The number of units you receive will depend on what amount you invest and the unit price of the investment at the time of purchase.
The fund manager will ultimately decide the underlying investments that the fund will hold, as long as they are within the parameters set by the fund’s constitution and offer document, as well as when these will be bought and sold.
The fund manager is the legal owner of the underlying assets and you will be considered the beneficial owner.
The return you receive from a managed fund can be either income, which is called a distribution, or a change in capital value, which would be reflected in a change in the unit price.