Why invest in a managed fund?

Most funds offer the convenience of a regular savings plan so you can add to your investment on a regular basis. By purchasing additional units with a regular savings plan, you should end up paying less per unit over time. This is called ‘dollar cost averaging’, and it takes into account that while some units will be purchased at a higher price (meaning you’ll purchase less units at these times) others will be purchased at a lower price (meaning you’ll buy more). Over a period of time you should pay a lower average price per unit, which in turn takes the worry out of trying to time the market.

In addition to a regular savings plan, reinvesting any income earned back into your principal investment will compound your investment, meaning that you may have a higher investment balance on which to earn more income in the future.

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Because a managed fund is made up of pooled money from lots of investors, you’ll have access to investment assets not usually available to individual investors. Managed funds invest in a range of individual investments within an asset class or across asset classes, including cash, bonds, property and shares. This way, you are automatically diversifying your investment.

Further information about spreading investment risk is in the minimising risk section.

Not everyone has the time or skill to manage their investment portfolio. With a managed fund you can tap into the resources and expertise of specialist fund managers. These trained investment specialists research and monitor investment markets to determine the best possible investment opportunities in line with the fund’s objectives and strategies. Depending on the fund’s investment strategy, they may review hundreds of different assets and companies across many different asset classes and industry sectors. Sandhurst Trustees has appointed fund managers which, in its view, have the necessary experience, expertise and resources to invest your money on your behalf.

Investing in a managed fund needn’t be complex. Typically, an initial investment of just $2,000 is all you’ll need to begin investing in most funds.

Once you’ve decided which fund suits your objectives and tolerance for risk, the fund manager does the rest. When you invest in managed funds (outside of superannuation) your funds can typically be accessible when you need them, although most funds will require some form of notification before you can withdraw. Remember to check the product disclosure statement for costs and any terms and conditions involved in redeeming your investment.

A margin loan allows you to borrow to invest in shares, managed funds, master trusts and assets within wrap accounts and use your investment portfolio as security for the loan.

Leveraged Equities Limited is a wholly owned subsidiary of Bendigo and Adelaide Bank Limited and is a specialised margin lending business with a proud history of service and performance in the wealth financing market.

Sandhurst Trustees and Bendigo Bank customers can conveniently access Leveraged Equities’ wealth building products through their local branch, or through a Bendigo financial planner.

Join the thousands of Australian investors who enjoy the flexibility of a margin loan from Leveraged Equities and you too can begin to leverage your way to wealth. To find out more, visit the Leveraged Equities website

The Australian Securities and Investments Commission¹ suggests that you can expect a negative return on share investments every four years – and every six years for property and every eight years for fixed interest investments.

¹ Source www.fido.gov.au – negative returns: the dark side of investments

Borrowing to invest can help you increase your long-term wealth, so you can potentially reach your financial goals sooner. Just as many Australians have improved their financial position by borrowing to invest in property, margin lending allows you to apply the same philosophy to the share market or managed funds.