| Managed funds are, as the name suggests, funds | | | | allows you to see where your money is going to |
| managed by someone other than yourself. That | | | | be invested. If you need to withdraw your |
| is, they are your funds - along with a lot of other | | | | money at any time, it should be possible to do so, |
| peoples' and there is a funds manager who | | | | with only a small delay of a few days. Because |
| invests them for you. A funds manager usually | | | | your money is spread over such a diverse |
| has access to a wider field of knowledge about | | | | number of investment companies, it is more likely |
| investments than the average person has. | | | | to be safer. If you have all your eggs in one |
| Therefore he can invest the money in many | | | | basket and it is dropped, then you will lose all your |
| different ways. | | | | eggs. |
| Managed funds are also called unit trusts. The | | | | Managed funds all attract some kind of fees. You |
| benefit is that when you pool your money along | | | | may have to pay an entry fee, an exit fee, or |
| with many others, then you are able to access | | | | one but not the other, depending on the type of |
| certain investments that would be otherwise out | | | | fund you choose. Some funds have no entry or |
| of your reach. You may only have say, $1,000 to | | | | exit fees at all, but there are other kinds of fees. |
| invest, but when you add it to the pool it | | | | Find out everything about your proposed fund |
| becomes a great deal more, so can be invested | | | | before joining, or you could be in for a nasty |
| in things like shopping centres, blocks of flats, | | | | shock. There is also an annual management |
| shares or any combination. | | | | charge. This is what the fund manager makes his |
| Managed funds must have a prospectus that | | | | profit from. |