Investment methods

Investing via managed funds

Some advantages of investing through a managed fund are:

  • Achieving greater diversification.
  • Access to professional funds management whereby investment decisions are evaluated, made and managed by professionals. 
  • Accessing markets that may be difficult to access directly, e.g. the Japanese share market or property in Europe. 
  • Benefiting from economies of scale, e.g. the fund manager usually has greater buying power and can negotiate better fees or conditions. 
  • Lower investment fees, depending on the type of fund and underlying investment. 
  • Most funds have reasonable liquidity and redemption facilities (where you can redeem your units through the fund manager). 
  • Ease of reporting and record keeping, including tax information to assist with completing your tax return. 
  • Ease of comparison. The major fund manager performance figures and fees are published.