Introduction to Funds
|Money Market Funds|
|Fund of Funds|
Funds are an investment vehicle that usually refers to managed fund or mutual funds, exchange-traded funds, hedge funds, index funds, or bond funds. The concept behind a fund is that the investor makes a single purchase with a fund, although the fund itself may contain a variety of shares or investment types within itself. Another way to think of it is many investors pooling their money to purchase a larger asset base.
While funds may have many benefits over shares, for example diversification and professional management, they also have drawbacks like management and entry fees.
Funds may also be very diverse in their objectives, and in the ways they achieve them. It is important to fully understand what components make up the fund, or who is even managing the fund.
This section will cover many important concepts that go into the construction of a fund, as well as ways to match a particular fund to your risk and reward appetite. There are many nuggets of useful information that will assist you in wisely choosing and trading the right fund
- Managed Funds or Direct Shares
Before you can know how to best invest your money you need to first make a plan. Choose an investment vehicle/s that will best reach your invest goals.
- Managed Funds - Choosing the best fund for you
Managed funds, also known as unit trust or mutual funds, allow investors to pool their money together and buy different companies.
- ETFs (Exchange Traded Funds)
An exchange traded fund (ETF) is a cross between an index fund and a stock. It combines the low fees and diversification of an index fund and the liquidity of stocks.
- Introduction to Index Funds
An index fund works by buying all the securities that make up a specific index, for example the S&P/ASX 200 index. Find out if you should invest in a Index Funds VS Managed Funds.
- ETF Trading
There is a huge variety of options when it comes to trading ETFs. ETFs can be bought and sold short. They can mirror an index, sector, or even an entire country.
- Physical ETFs vs Synthetic ETFs
A synthetic fund is one that does not need to hold the identically matching underlying shares in support of ETF pricing. synthetic ETFs are able to perform feats that traditional ETFs cannot.