Like shares, managed funds are liquid assets. This means that if you want, you may redeem parts or all of your share/units on any business day (restrictions may apply). Unlike shares though, you don't need to pair up a buyer and seller in order to establish a buy/sell transaction.
What you need to consider
When investing in a managed fund, you should be aware that:
- Returns are not guaranteed – future returns may differ from past returns, and the level of returns may vary, and
- The value of your investment may vary, and there may be the risk of loss of invested capital.
Before making a decision you should:
- Read the relevant Product Disclosure Statement for full details on the terms and conditions that apply to your investment
- Read the fund’s Information Memorandum and any other associated documents
- Go to the Australian Securities and Investments Commission’s consumer website ‘Money Smart’, where you’ll find more information about managed funds and fees
- Conduct your own independent investigations and analysis of the fund, and
- Obtain appropriate ﬁnancial, legal and tax advice.
For more information on the types of managed funds available, ways to invest, unit pricing and performance as well as the fees and risks associated with investing in a managed fund, please see the ‘Understanding managed funds’ booklet.