Investments
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 and 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.
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