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What are managed funds?

A managed fund involves pooling together money from different investors into one fund that is then invested to buy assets such as shares, bonds, property, or cash.


  • Diversification – Provides access to a wider array of asset classes, sectors and industries than you could otherwise achieve by investing yourself. They are less exposed to the performance fluctuations of individual shares. Therefore, managed funds reduce security risk. There are generally two broad styles of investment management – active management and passive management.

  • Can make additional or regular contributions – You can establish a regular investment facility (often with a minimum amount) that allows you to grow your investment savings over time with a fixed dollar amount invested each month, quarter, or year.

  • Simplicity – You don’t have to personally spend extra time managing or arranging your investments as an expert in the industry will complete this for you.

  • Reporting – Managed funds will provide you with consolidated tax reports which make it easier to complete your annual income tax return.

  • You can start small - You can generally access with a few thousand dollars or less.


  • Professional management fees are generally higher than brokerage costs.

Suitable for:

  • Individuals wanting to invest with a view to reduce risk.

  • Individuals with small balances or high net worth individuals.

  • Other entities can use managed investments such as SMSFs, companies or trusts.


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