Choosing a Managed Fund
Choosing a Managed Fund and Structuring a Portfolio?

Investment managers employ different investment strategies to achieve their objectives. These strategies and objectives are detailed in their product disclosure statements. This allows you to pick and choose investments to fit in with your own investment preferences such as the level of risk you wish to take or whether you have a preference to invest in a particular investment sector such as equities in large companies or overseas based investments.

Fund objectives cover a wide range, from lower risk/conservative funds with a focus on preserving capital and producing income, through to higher risk/aggressive funds, where growth is the primary objective.

It is important to understand that a manager’s objective is to invest to their declared objectives regardless of whether they feel that investment sector is going to do well.  For example an Australian equities manager may feel Australian equities are going to fall in value over the short term, their job is to try and achieve the best possible returns whilst remaining invested in Australian equities. They cannot switch all their holdings out of the market. At Neville Ward Advice we specialise in actively structuring portfolios to help you hedge against these falls in the market whilst meeting your needs for growth and income.

 

Correctly balanced managed fund portfolio can reduce volatility but maintain returns using inversely correlated investment assets