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Top Performing Managed Funds

Investment Articles > Article: Top Performing Managed Funds

What makes a managed fund work? Good managed funds are the ones that take their time to invest and do their homework. That means that the investor has investment strategies that are proven and work, and accumulate capital over time instead of wasting it. These funds will have low fees and lower risk but higher returns hopefully. The value of them must be high.

One way to ensure this happens is to find out whether a managed fund is capable of creating balance. There inevitably managed funds that concentrate on high returns on investment and those that focus on average returns. A diverse portfolio is a good idea for the investor seeking the best of both worlds.

Which self-managed performer you end up with will depend largely on what your goals are and the type of risk taker you are. Think about this as you peruse the rest of this article. You should always check standard indices to see how well a self-managed fund has performed over the last year and beyond that if you can. Generally that will give you some idea of how well the fund will do. But remember, time won't always tell. Much can happen in the space of a few years. You can of course always change your investments.

How to Find Good Self Managed Funds

Do you know how to find a good performer? First, look for a managed fund that is actively managed. You don't want one that is left in the dark. You don't want one that isn't cared for properly. One that is actively managed is one that provides up to date data for prospects. Speaking of prospects, have you reviewed the prospectus? You can always check in with your financial planner or licensed advisor to get a head start about what self managed funds to look into and then do your homework.

Don't forget to make notes regarding any questions you may have for a professional if you run into material you are not familiar with so he or she can answer them for you later. You may find it helps to do this periodically and throughout the life of your fund so you are constantly informed about the "health" of your funds once you do invest.

Next, if you can, look for one that offers no fees or a rebate on fees that are charged. Why? Some self-managed funds charge a fee when individuals invest in them or add money to the investment you already have. That hardly seems fair. Some fees are high, as much as 6% or more in certain instances.

In many instances it doesn't matter whether you invest using a qualified financial planner or a fund manager to represent you. Sometimes fees are waved when you have a licensed professional representing you. If you find that you must pay fees, look for a different fund, one that does not penalize you or one that is willing to rebate your entry fees. This may happen instantly or over the life of your investment.

As long as it is done you will maximize your return on your investment. You should also be weary of any fund that seems to charge a higher than average entry fee, because this can be a hassle for first time investors.

Which Funds Will Make You the Most Money?

Funds perform differently from year to year and day to day. You can't really predict how well a fund will do in say, twenty years, but you can kind of average the results given the firm's reputation and history. Typically researchers offer reviews of top performing funds by reviewing historical returns on funds for one year previous.

A review of Australian funds based on multiple indices including the S&P rating and historical returns, including Morning Star Research and various Prospectuses suggest the following fund names are currently doing very well (as per the review in May 2008), and could be considered for anyone looking into top performing managed funds:

  • Aspen Unity Healthcare Property Trust - This is a Property Fund
  • Mirvac AQUA High Income Fund - Mortgage Fund
  • EQT PIMCO Global - This is a Bond Fund
  • Mariner Mortgage Trust Retail Class - This is also a Mortgage Fund
  • BT Investment - This is an Australian Cash Fund
  • CFS - Cash Management Trust - This is an Australian Cash Fund

Of course this list does not include all of the top performers. You can always conduct your own research to find various other types of funds and determine how well other funds perform on the market. Your financial planner or other licensed professional often will have a list of current popular and top performers among the various types of funds in case there is a specific fund you want to research.

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