Australia - Mutual Funds


Mutual funds are a common investment vehicle nowadays. For many people it represents investing. It is easier than picking individual stocks on the market. But, over the years the number of mutual funds grew and picking the one you want to invest in is becoming increasingly difficult.

The advantage of investing in a mutual fund is that it has a professional management. The fund presents a diversification for an investor because it invests in multiple company stocks and disperses the risk. Also, the price of a mutual fund is usually low and allows owning a share of an expensive stock that would otherwise be hardly affordable.

The disadvantages of the mutual funds are almost the same as their advantages. Professional management does not necessarily mean your money will be better of, although it could. This professional management charges you a fee for their services, which eats into your earnings. Risk diversification they offer also means gains dispersion from the well-performing stocks.

Mutual funds invest in almost all possible investment options.

One of the possible divisions of mutual funds and the one I am using here is the division of mutual funds into:

To read a tutorial on mutual funds at Investopedia, click here.

ASX listed

Some managed funds are listed on ASX (link).

ASX provides a market update for managed funds.

Listed Income Trusts (lit)

Listed Income Trusts are funds that are listed on stock exchange and invest in share income opportunities.

Aurora (link)