If you have some money to invest and would prefer a professional’s watchful eye, perhaps managed funds are the way to go!
In a managed fund, your money is pooled together with other investors. The head honcho of the fund, aka your investment manager, then buys and sells shares on your behalf. The pros include a reduction of paperwork, ensuring tax time super easy for you. But a managed fund has strict processes, making hard to get your money whenever you want. It also is a bit pricey – most funds need a minimum of $5k to get started.
Tips and tricks
Did you know managed fund chooses shares on your behalf? This is not ideal for the impact investor as you may end up spending money on companies you’re not totally comfortable with. Talk to your investment manager for options.