Managed funds

Since the first managed fund was launched in 1936, managed funds have become a popular form of investment in Australia. Millions of Australians now invest more than $540 billion in managed funds.

A managed fund pools together people's money to invest in a range of investments. A professional manager invests your assets in one or more of the asset classes - cash investments, bonds, listed property and shares (both Australian and international).

Most managed funds are divided into units - so when you invest in a managed fund you are usually purchasing units in that fund. The number of units you are allocated will depend on how much money you have invested and represents your share of the fund.

Managed funds provide a cost-effective way for investors, large and small to access a diversified mix of investments in a professionally managed package. Because your money is pooled with other investors you can invest in assets which might be too difficult or expensive to invest in directly yourself.

Like to know more? Read the Managed funds Plain Talk® Guide.