DAYTON TENNESSEE DEPARTMENT OF EDUCATION

Environment: Economic trends and possible political changes are some other factors to keep a weather eye out for. If you invest heavily in a fund that in turn invests internationally, you’ll want to know where your money is going and whether the governments and economies in question are stable and likely to stay that way. Some financial advisors suggest that investing 15-20% of your capital overseas is a wise move, and it is – as long as the country/countries in question have a good economic climate and aren’t in the throws of political upheavals.

So, now you have a few tips for finding yourself a managed fund that will help to grow your wealth. Once you’ve chosen a fund, or have decided on the sorts of investments that you’d like to be involved with and you’re looking for a fund, there are still some more things to consider before diving in.

This is the first instalment of a four-part series of articles to help you cut through some of the financial jargon without getting too much of a headache. The next three instalments will look at investment rates, retirement funds and self-managed superannuation. Hopefully they’ll help put you on the right track to grow your wealth.

A final note: This article – and the series of articles to come – is not given as professional financial advice. Your personal circumstances have not been taken into account and financial situations vary the world over. You should seek professional financial advice and read the product disclosure statement for any financial product before making a decision.

Managed funds are an easy way to invest wisely and with low risk. Investment in a fixed term deposit – especially with a fund that invests in real estate – is an easy way to grow to your wealth.

• Apart from being a great way to have your money managed by investment professionals, managed funds also simplify the process of building and maintaining an investment portfolio. Instead of tracking a wide range of individual investments, your fund will keep track for you, and the progress of your investment is expressed in one simple unit price.
• A Bit Here and a Bit There
• With any investment strategy diversification is important to minimise risk. The resources available to financial institutions are usually greater than those of the individual investor, therefore diversification is much easier as part of a managed fund than it would be if you had to raise the capital for a truly diverse – and therefore more secure – investment yourself.

As an example, if you have $100,000 to invest and you choose to buy real estate, your $100,000 might buy you a small unit that you could rent out. Then your entire financial future hangs on the performance of this one investment. If houses in that area depreciate due to changes in the locale, or you have trouble finding or keeping tenants, or you find out three weeks too late that there are serious structural problems, your financial future is in jeopardy.

• By comparison, a managed fund that invests in mortgages has the capital to speculate on a wide range of properties in diverse suburbs, with differing land values, various land uses (residential, commercial etc), and a much lower dependence on the performance of any single investment property. Your future no longer hinges on one little unit because it’s merely a part of a much larger portfolio than you could invest in on your own.
• Choosing a Managed Fund