managed funds

What is the difference between managed funds and direct shares?

Managed Funds are a way to own shares without having to select the individual shares yourself. It is a way to pool all investors in a group and share the benefits together. You buy units in the fund from the fund manager and sell these units back in the future to this fund manager. With direct shares, the investor owns these shares directly. You buy these from the stock market and you sell them directly to the stock market. These …

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What is the difference between LICs and Managed Funds?

Two products which are available in the market for investors are LICs (listed investment companies) and managed funds. These two products are very similar but they also have their differences. In this article we discuss the definitions and differences of both. What is an LIC (listed investment company) Listed investment companies (LIC) are publicly listed companies with the main objective to actively manage money and outperform a benchmark. Investors can purchase these LICs on the stock exchange. When investors purchase …

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What is the difference between a hedge fund and a managed fund?

One would assume that hedge funds and managed funds are the same thing. This is because both are a managed portfolio of shares. However, the objectives of both are different and this is what sets them apart. Below we outline the differences between a hedge fund and a managed fund. Managed Funds These usually have specific objectives such as investment in a specific asset class or investment strategy. You can invest in managed funds that hold equity, bonds or alternative …

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What are the differences between listed and unlisted managed funds?

Managed funds have recently become very popular due to the automatic diversification they offer. Investors who do not have much experience in investing will also find these products useful as all the investment decision making has been done for them. Managed funds can be listed or unlisted. In this article we discuss the differences between the two. Listed Funds: These are funds which are listed on the Australian stock exchange and traded like shares. The price of listed funds changes …

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