Are you looking to invest some of your hard earned money into a managed fund but can’t find your way around the jargon? Let’s break down some of the fancy financial investment language into simple terms:
In a managed fund your money is pooled together with other investors. An investment manager then buys and sells shares or other assets on your behalf. You are usually paid income or ‘distributions’ periodically. The value of your investment may rise or fall with the value of the underlying assets (ASIC’s Moneysmart, 2018). Managed Funds can fall under two broad categories: income and growth.
All funds have a different investment strategy, for example, TPT Wealth implements a diversified strategy across a range of interest bearing investments including; loans secured by first mortgages, debt instruments such as credit market securities and asset backed securities, and shorter term investments such as money market type securities and cash.
Income funds are often seen as less risky, as rates of return broadly follow general movements in interest rates.
The funds are biased towards growth assets (such as shares and property) and are designed for investors seeking long-term capital growth, therefore, they have a higher level of volatility.
TPT Wealth Investment Growth Funds are designed to provide investors with exposure to various growth asset classes and seek to produce competitive returns and regular income streams. A multi-manager investment approach is employed which blends together a mix of multiple specialist investment managers that have different investment strategies and/or styles in to a single fund. This can help smooth volatility and reduce risk.
An active investment approach also continuously monitors and assesses the investment managers and looks for opportunities to deliver better risk and return outcomes to our investors.