About managed funds

Investing in managed funds is a great way to gain access to many different types of investments, some of which are not normally available to an individual investor.

What is a managed fund?

A managed fund is a pool of money that has been invested by many different people. A professional fund manager looks after this pool of money and invests it into certain investments (e.g. shares, property, bonds) designed to meet the fund's stated investment objectives.

When you invest in a managed fund, you buy units in the fund. Your units represent the total value of your investment within the fund. You can track the value of your investment by multiplying the number of units you own by the current unit price.

Why invest in a managed fund?

Access to a broad range of investments
Investing in a managed fund gives you access to a range of investments that may not ordinarily be available or affordable to you as a single investor. For example, international shares or commercial office buildings.

Experience of the fund manager
By investing in managed funds you can benefit from a fund manager’s expertise, resources and experience. This means you can spend less time managing your own investments, and you also gain peace of mind knowing that your money is in experienced hands.

Diversification benefits
Managed funds can invest across the range of investment types or asset classes, and across a wide range of investments within each asset class. They offer a broad level of diversification that is not possible to achieve on your own without large sums to invest. Managed funds also provide the opportunity to diversify between fund managers, and types of funds. This level of diversification can mean more growth and lower risk over time.

Regular savings plans
Many managed funds offer the convenience of a regular savings plan so you have the convenience of being able to add to your investment on a regular basis. Regular investments can often be deducted straight from your bank account.

Seek advice on the managed funds that will suit you

Whether you're an expert or novice investor, good advice is important. Commonwealth Financial Planners can recommend managed funds from over 40 leading fund managers. A Commonwealth Financial Planner will work with you to develop a detailed plan designed to achieve your personal financial goals.

To find out more about how a Commonwealth Financial Planner may be able to help you, or to make an obligation-free appointment with a Commonwealth Financial Planner call 1800 241 996 or email us.

Important information

• This is not advice, this provides general information only and does not take into account your individual financial circumstances or investment objectives. You should assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment. Investment products are subject to investment risk including the loss of income and capital invested. Colonial First State Managed Investment Funds, FirstChoice Investments and FirstChoice Wholesale Investments are issued by Colonial First State Investments Limited ABN 98 002 348 352 AFSL 232468. Product Disclosure Statements (PDSs) describing the products are available by contacting Investor Services on 13 13 36. You should consider the relevant PDS before making a decision about the product. The responsible entity, Colonial First State Investments Limited receives fees.
• Commonwealth Financial Planners are representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169 AFSL 231139. Commonwealth Financial Planning Limited is a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.