What Is A Professionally Managed Fund?
A Managed Fund is an investment vehicle that invests in the financial markets (shares, bonds, etc). Managed Funds offer an opportunity for investors to "pool" their money under the supervision of an experienced fund manager.
The fund manager, who is well-versed in the securities markets, then diversifies the now-large amount of money into a variety of shares and bonds within a variety of industries. As an investor, you own shares in the managed fund in proportion to your investment, and receive your proportionate share of any earnings on the investments of the funds.*
Benefits Of A Managed Fund
Managed Funds are popular because they offer a simple and convenient way to invest in a portfolio of securities, opening the door to investment options that most people lack the time and knowledge to explore on their own.
The unique aspect of managed fund investing is that it allows small investors to take advantage of the same professional management as large institutions.
Some other benefits include:
- Full-time professional management
- Tax reporting
- Variety of objectives
- Potential for growth
*Fees and/or expenses may effect the net return on an investment