FINDEF019 Understanding managed funds (772 words)

An article discussing what managed funds are, the types of funds that exist and the tax rules/implications

Managed funds are one of the most common ways investors can invest their money. Even many large superannuation funds will use managed funds as a way to access the skills of investment managers and different types of investments.

How do managed funds work, what types are available and what are the risks involved?

Managed fund basics

When you invest in a managed fund, you're allocated a number of units based on how much you invest and the current price of each unit. If you invest $5,000 and the unit price at the time is $1, you would own 5,000 units.