Every investor has a different investing strategy, and there are many investment types to choose from. From listed managed funds to unlisted managed funds, investors have plenty of options when it comes to investments. Which type of fund you invest in depends on your risk tolerance and your goals, but one of the best reasons to invest in employee share scheme is because of their low fees that can help you maximize your profits over time. Learn more about the differences between listed and unlisted managed funds and whether this investment type may be right for you.
Choose a fund manager you trust
If you’re looking to invest in an unlisted managed fund, it’s important to choose a fund manager you trust. Doing your research and due diligence is key to finding a reputable and reliable fund manager. Here are seven things to look for when choosing a fund manager:
- Experience and expertise in the investment industry;
- Proven track record of delivering strong investment returns;
- Good communication and customer service skills;
- Clear and concise reporting;
- Fee structure that is reasonable and transparent;
- Strict compliance with regulatory requirements; and,
- An ethical approach to investing.
Keep fees down
When it comes to investing, one of the most important things to consider is fees. And when it comes to managed funds, unlisted funds often have lower fees than their listed counterparts. This is because unlisted funds are not subject to the same regulatory and compliance costs as listed funds. As a result, unlisted funds can pass these savings on to investors in the form of lower fees. For example, if you invested $10,000 in an unlisted fund with an annual fee of 1% versus a listed fund with an annual fee of 2%, you would save approximately $200 per year. That’s $200 more that could be put towards other investments or saved for retirement.
What are the benefits of managed funds?
When it comes to investing, there are a lot of options to choose from. But what have managed funds? And why should you consider them? They’re unlisted and thus have lower fees than listed products because they don’t need to pay for advertising. They also have less risk than unlisted products because the fund manager is liable if something goes wrong. Plus, your investment can grow over time as new investors purchase shares in the fund. That’s not true with listed investments like stocks and shares which only increase in value when someone buys more of the company’s stock or the share price rises over time