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The Advantages of Managed Funds

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The main advantage of managed funds is that they provide access to investment opportunities otherwise unavailable to the individual investor.

Investors’ money can be spread over a wide range of investments, allowing greater diversification across countries, asset classes, industries and companies.

Managed funds provide private investors with access to markets and strategies that rely on economies of scale, such as commercial property or money markets that would not normally be accessible to a small investor with limited funds. In addition, managed funds allow investors to invest worldwide – into established markets, specific regions or emerging economies.

Managed funds are managed by experienced fund managers specialising in selecting and managing investments. Professional fund managers have better access to information, through research and in-house expertise than the average investor. Because they are buying and selling large investments on a regular basis, they may be able to negotiate lower transaction costs.

Finally, lump-sum contributions can be made at any time, regular payments can be set up, and minimum investment amounts are normally low.