Investment
Introduction to managed funds
A managed fund pools together people's money to invest in a range of investments, such as shares, property and fixed interest.
Managed funds provide a cost-effective way for investors, large and small to access a diversified mix of investments. As your money is pooled with others you can invest in a range of assets that might be too difficult or expensive to invest in directly yourself.
A professional fund manager invests your assets based on the fund's investment strategy and objectives. This means you don't have to worry about monitoring your investments or selecting which companies or securities to invest in.
Instead of owning the investments yourself, like when you buy shares directly, the managed fund owns the underlying investments on your behalf. Each investor is allocated units representing their share of the fund. The value of your units fluctuates with the value of the underlying investments, which is reflected in the unit price.
There are many different types of managed funds offering a range of investment objectives and strategies. Total managed funds assets in Australia currently exceed $1.3 trillion and make up a large proportion of assets under management in superannuation funds.
Go to topMore investment basics
- Introduction to managed funds
- Choosing your investment strategy
- Asset classes
- Cash basics
- Fixed interest basics
- Property basics
- Sharemarket basics
- Investing overseas
- Diversification
- Investment costs and performance
- Investing for your lifestage
- Secrets of successful investors
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