in managed funds is a simple process and you don't
need a large amount of money. When you are ready to invest, you can
usually purchase units in the fund by simply completing the application
form attached to the relevant prospectus and include your payment. You
can invest a single lump sum investment or you can invest a smaller
amount and add to it with a regular investment plan which will allow
you to build up your investment with regular contributions over time.
Advantages and Disadvantages of
- Managed funds enable investment in
assets without having to invest directly in those assets. Investments
are managed by a professional fund manager.
- You do not need to access to research
information about a particular company or asset or the specialist
knowledge to analyse and understand it as you would with shares.
- You can achieve diversification with
a small outlay across a range of investments through a single fund
- Fund managers look after administration
and day to day responsibilities of the investments.
- You can control the type of assets
you invest in but you don't have complete control over the exact assets
your fund invests in.