| Managed funds are investment choices that have | | | | performance and will also inform you about the |
| been widely reported in the news lately. Most of | | | | specifics related to the fund. These specifics |
| the news is good, but some are bad. There are | | | | include: |
| news articles reporting the default of loans to | | | | Industry classification such as an energy fund or |
| lenders, but there are also magazine articles | | | | real estate funds |
| discussing currently undervalued funds. For many | | | | Purpose of the fund such as high-growth or |
| investors, the seemingly conflicting stories are | | | | high-stability |
| enough of a deterrent from even entering the | | | | Type of investment such as blue chip fund or |
| market. | | | | small company fund |
| But, managed funds really do not have to be that | | | | It is like having a pre-built portfolio |
| difficult. Basically a managed fund is one where | | | | With a managed fund, the diversified portfolio is |
| the fund itself purchases stocks, bonds, cash | | | | already built for you. You can select the type of |
| securities and/or other investment options based | | | | fund that has the allocation you would have |
| upon their rules and the fund is then managed on | | | | implemented for yourself without having to put |
| a full-time basis. The manager of the fund must | | | | the time and effort into finding all the choices. |
| keep up with the market and will buy, sell or | | | | Can invest based upon your budget |
| trade based upon pre-set rules. | | | | You do not have to have thousands of dollars to |
| You, as an investor can then put money into the | | | | invest. Many managed funds will allow you to give |
| fund. You will not own any of the investment | | | | an initial investment of $50. Because you do not |
| choices on your own, but will gain or lose | | | | really own the individual stocks or bonds, you do |
| depending upon how well the collection as a whole | | | | not have to pay based upon the market. Instead, |
| does. Some advantages to managed funds include: | | | | you are buying into a collection of funds and your |
| Having an expert take care of the fund | | | | funds just add to the total amount that is |
| If you are like most investors, you do not have | | | | invested. |
| time to figure out what the rising Euro will do to | | | | Managed funds are a great option, but even so |
| the stock you bought yesterday. But the | | | | still require some planning and research prior to |
| manager of the fund must know this type of | | | | investment. Find funds that are managed by |
| information and will take the appropriate action. | | | | well-known companies, have a proven history of |
| Because fund managers are usually employed by | | | | success and that provide you with periodic |
| a larger financial company, such as T. Rowe Price | | | | feedback so you know how you are doing. Once |
| or Fidelity, there will be accountability to the board | | | | you do this, you can then put all the maintenance |
| of directors of that company. | | | | work into the hands of the manager and |
| Some funds are riskier than others, but the fund | | | | concentrate on your daily life. |
| collateral should give you an idea of past | | | | |