Help us improve our website by completing a quick survey. Start survey now

About managed funds

How they work

  • Managed funds pool the money of many individuals and are invested by a professional fund manager in a range of asset classes (e.g. shares, property and bonds)
  • Each investor is allocated a number of ‘units’, making you a ‘unitholder’. Each unit represents an equal amount of the market value of a fund
  • During the year a fund can earn income in the form of dividends or interest and benefit from growth in the value of its investments. It may also make profits on the sale of its investments
  • A Commonwealth Financial Planner can help you choose the right managed fund for your needs. Make an appointment for a complimentary initial, no-obligation consultation

What are the benefits?

  • Choice of fund type – invest in a fund designed to deliver regular, stable income, or focused on capital growth. You can take on as much or as little investment risk as you want
  • Diversification – access different fund managers, asset classes, companies, industries, sectors and countries. To achieve this level of diversification on your own, you would need large sums to invest
  • Professional management – benefit from the fund manager’s expertise, resources and experience. They have access to information, research and investment processes not readily available to individuals
  • Access to sophisticated investment products – which may not be available or affordable to an individual investor

Maximising your investments

  • Understand your investments – know what you’re investing in and how much risk is involved. A Commonwealth Financial Planner can help select investments that suit your situation and goals
  • Invest regularly – many funds offer the convenience of a regular savings plan so you can add to your investment on a regular basis. Regular investments can often be deducted straight from your bank account
  • Reinvest your earnings this allows you to purchase more units in the fund with no additional cash outlay. This strategy will also help you take advantage of compounding over time

Related products

Commonwealth Direct Investment Account

The perfect place to grow funds after selling a property or cashing in a share portfolio. Provides full access to your funds when you need them.

Learn more

Protected Loan

This flexible loan facility allows individuals and self-managed super funds to borrow to purchase shares in two payments.

Learn more

Term deposits

Enjoy the security of an interest rate guaranteed not to change for the nominated term, so you know exactly what your investment’s worth.

Learn more

Important information

1The information contained on this web page is of a factual nature only and is not intended to constitute financial product advice. It has been prepared by Commonwealth Financial Planning Limited without considering your individual objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeing professional advice relevant to your individual needs before making a decision based on this information. Commonwealth Financial Planners are Representatives or Authorised Representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.
2Investment products are subject to investment risk, including the loss of income and capital invested. Past performance is no indication of future performance.