Managed Funds
A Managed Fund is an investment where a professional fund manager invests money on behalf of a number of investors. These managed funds will have specific mandated areas for investment, eg Australian shares, fixed interest, listed property, and can be invested on behalf of personal funds, superannuation trustees or corporations. Through pooling funds, investors are able to gain entry to markets that would not normally be available to them. Managed funds can also be referred to as unit trusts.
It is important that investors in managed funds and unlisted trusts understand the nature of the underlying investments in the fund. In the early 1990’s, many investors in unlisted property trusts were unable to redeem units, as the managers were unable to dispose of the necessary properties to meet unit-holder redemption requests.
The fund manager is paid a management fee. Clients of Future Wealth Planners Pty Ltd have access to over 300 wholesale managed funds.
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