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Investing in Managed Funds

Investment Articles > Article: Investing in Managed Funds: 10 Things You Must Keep In Mind When Investing In Australian Managed Fund

Among the more popular of investment vehicles or tools in Australia is the managed fund. If you plan to invest in Australian managed fund you need to invest in ones that are going to fit your needs as best as possible. You can then visit with financial planners and fund managers and decide what regular contributions you will make and what investment options you may have with time that will maximize your profits.

Investing In Australian Managed Funds

Investing in Australian managed funds can be a bit tricky, so it is important you know what to do and not to do. Here are 10 tips that will help you make the best possible choices when investing in the Australian market.

 

  1. Make sure you spend some time with a pen and paper. You can't start investing until you know what your financial goals are. So, to start, write down what your financial goals are. This is the single most important thing you can do before you invest in anything. Ask, "What do I want to achieve?" You should also determine how much money and time you are willing to take out and risk, because investing in anything involves risk. Ask, "Do I want a low risk or aggressive risk mutual fund?" You should also consider whether you feel ready to invest in small or large companies.
  2. Talk with colleagues or other people you know already invest in mutual funds and see what different advice they have to offer. Most people are happy to provide advice to you about investments.
  3. Talk with a professional financial advisor. You can go with the advice of friends and family, but it is also always a good idea to talk with a professional, someone that is licensed in Australia to offer financial advice, because they are experts in their field. Make sure the person you work with holds a license. The Australian Securities & Investments Commission can help you do this.
  4. If an advisor recommends an investment scheme, make sure he or she registers it with The Australian Securities & Investments Commission. (http://www.asic.gov.au/). This is a requirement by law.
  5. Make sure a product disclosure statement, also known as a PDS, is available for a particular investment scheme, and then take the time to read it. This document must provide you with the information you require to decide whether you want to invest in the investment scheme recommended by an adviser.
  6. Ensure that a scheme adheres to the Australian law and code and complies with the letter of the law. Remember proper schemes will have a number provided by the ARSN, or the "Australian Registered Scheme Number".
  7. Make sure you are familiar with the fees associated with working with a financial advisor. Find out if you have to pay them a commission on any monies you earn or a flat fee for their advice and services.
  8. Find out how difficult it will be to change your scheme or investments over time.
  9. Take some time to learn more about Australian mutual funds in general. That way, when you do talk with someone about investing, you have some knowledge of what managed funds are, how fees work, and what the role is of the investor (you) a broker, and the companies involved.
  10. Decide how much money you are willing to lose, because remember the market is something that is dynamic. You have a good chance of earning money over time, but remember you also lose some money. If you have concerns that you may lose money, find out what your breaking point may be. Make sure anyone handling your funds knows what this is so you can make changes to your investment when necessary. Have a plan of action in place for taking charge of your funds in your absence.

Other Important Investment Tips For Australian Investors

There are many other important things to keep in mind when planning to invest in the Australian market. Most people know it is wise to consult with a professional advisor. It is also a good idea to read financial information in your local newsletter and in certain publications specific to Australia.

This will keep you updated regarding local events and currently world news, which may affect Australian markets.

Last but not least, consider learning more about a particular investment scheme by reading their own investment profiles in more depth. Many have websites for example. You can learn more about them on the web. You an also contact a representative and request information. Most are happy to provide you with information.

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