Investment Funds

Why invest in an Investment Fund?

There is a growing interest in investment funds these days, in part thanks to the volatility of the economy. Getting started, however, can be a daunting task, especially for beginners. Where does one start?

TPT Wealth understands that there’s a learning curve for these matters, and for those already familiar with investment funds, balancing their funds can be complex and time-consuming. Your time is as valuable as your funds, and we’re here to help you manage the latter. We have been managing investments on behalf of investors from all over the country, offering peace of mind that their funds are in good hands.

Before we start, we would like to state that the following information is intended only for general information purposes. This article doesn’t take into account an individual’s investment goals, financial situation, or specific needs. Any advice inferred from this article should not be taken as professional financial recommendations or used to make any financial decisions. Before acting on any advice, consider whether it is appropriate for your circumstances and seek independent advice. Always read the relevant Product Disclosure Statements (PDS) and other disclosure documents including the Target Market Determinations before making any decisions.

Here are the basics regarding investment funds that you may find helpful.

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Cash & Income Funds

Aiming for capital stability and consistent investment returns.

  • Short to medium term investors
  • Generate income from a diversified portfolio
  • Assets include bonds, money markets and mortgages
  • Delivers monthly variable returns

Investment Growth Funds

Potential for higher average investment returns over the long term.

  • Long term investors
  • Assets include property, Australian and International shares
  • Short term ups and downs are part of the funds’ performance
  • Regular income streams

All investments involve various elements of risk. Whilst TPT Wealth cannot eliminate all risks associated with an investment in the TPT At Call Fund, Growth Funds and TPT Wealth Income Funds (including the risk of loss of income and capital invested), as Responsible Entity and Investment Manager we employ a range of strategies that seek to actively identify, assess, manage, and reduce risk. Neither TPT Wealth, nor MyState Limited or MyState Bank Limited guarantee the repayment of capital or the performance of the TPT At Call Fund, Growth Funds and TPT Wealth Income Funds. For important information about Funds and their risks, please refer to the Fund’s PDS and TMD.

ASIC Benchmark Disclosures:
ASIC has developed a range of benchmarks for unlisted mortgage schemes (such as the Income Funds) the enable investors to understand the risks and assess the suitability of the investments. This information is updated on a quarterly basis and made available on this website.

Why invest with TPT Wealth?

Short, medium to long term investments
Over 30 years experience
Invest in assets generally not available to retail investors
24/7 access to your investments via our online investor portal

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How do managed funds work?

To understand how managed funds work, we must first understand what a managed account is. While the two have similarities – and indeed have overlapping commonalities – they also have distinct characteristics that separate them from each other.

In plain language, a managed account is an investment account that an investor (either an institutional investor or an individual retail investor) owns but that someone else manages. The investor then hires a professional money manager to keep an eye on the account and the trading that goes on in it.

Consequently, a managed fund is a type of investment fund where your investment is pooled with those of other investors. The fund manager will then trade shares or bonds on your behalf, similar to a managed account.

In a managed fund, however, you don’t own the investments directly, as you do in a managed account.

You own a unit of the fund, which is a fractional interest or share in the assets held by the fund. Units in the fund can be bought and sold at any time, and each unit’s value will fluctuate based on the performance of the fund’s underlying assets. Income from managed funds, also known as distributions, is then shared among the investors of the fund.

Of course, there are more nuanced aspects to investment funds than what is presented in this article. That being said, if this information already seems complex, don’t worry – TPT Wealth is more than happy to guide you through your options for investment funds, including managed funds and cash and income funds.

Make sure you understand the risks associated with managed investment funds, as they differ from bank deposits and term deposits. Read the relevant Product Disclosure Statements (PDS) and other disclosure documents, including the Target Market Determinations, before deciding to invest.

Feel free to reach out to us with any questions on investment funds, wealth management, and other similar matters. We’ll be more than happy to answer them.

What are some of the different types of investment funds?

An investment fund gives investors access to a wider range of investment options, better management, and lower fees than they might be able to get on their own.

For this reason, there are several types of investment funds that you can look into. Importantly, your capital is not guaranteed. Below are only a few of the more commonly recognised types.

  • Cash investment fund. A cash investment fund is a short-term obligation, usually for less than ninety days, that pays interest as a return. Cash investments are usually made by investors who need a short-term place to put their money while they look into other investment options.

  • Exchange-traded fund (ETF). An ETF can hold various types of investment securities, such as stocks, commodities, or bonds, and can be localised or international. They also offer low expense ratios and fewer commissions for brokers compared to buying individual stocks.

  • Hedge fund. A hedge fund uses pooled funds and utilises various investment strategies to earn returns for its investors. This investment type aims to maximise investor returns while also minimising risk, and is generally only accessible through accredited investors.

  • Income fund. An income fund is a specific type of fund that prioritises current income earned on a monthly or quarterly basis through low-risk interest or income-paying investments.

  • Mortgage fund. A mortgage fund is an investment type where an investor’s funds are loaned to a range of borrowers to acquire or develop property assets. In exchange, the fund manager promises to pay the investor a regular income.

  • Mutual fund. A mutual fund is an investment type that features a portfolio of various securities, such as stocks or bonds, and is accessible to small or individual investors through conservative investments. Mutual funds also charge fees, ratios, or commissions that may affect an investor’s overall returns.

Are managed funds the best option for beginners?

It can seem overwhelming to get started with investment funds because of the wealth of options available. As much as personal investments are a great idea for securing our financial security, there is also a need to invest time and other resources into understanding the complex ins and outs of investing – time and resources we may not necessarily have available immediately or at leisure.

This is why TPT Wealth offers managed investments that can help make the transition into investment funds more manageable in terms of risk.

Managed investments give investors the ability to pool funds with other investors at a relatively low capital cost, and an experienced and skilled professional will handle the asset management for you for added ease. This way, you can generate income from a diversified portfolio while leaving the complex details of your investment funds in professional hands.

You can use the knowledge and experience of TPT Wealth’s investment management team to reach your investment goals and objectives.

Start your journey with TPT Wealth and apply for an account with us today.

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