Posted on March 26, 2010 - by admin

Australian Superannuation Funds and Their Benefits

Managed investments are trusts where investors pool their funds to form a diversified portfolio, managed by a professional team, which allow them to benefit from potential capital gains and income returns.  If investors were to invest directly in equity market, they may not be able to figure out which is the best sector to invest in and how many units to buy.  However, if these individual investors invest through managed funds, they can use the expertise of professional investment managers as well as benefit from economies of scale on costs.

Income that is generated from managed investments is paid monthly, quarterly and half-yearly. The distribution depends on the fund earnings that can be in the form of share dividends, rent from property, interest from fixed income investments and other capital gains.  You can take the income in the form of cash or even reinvest it back in the fund.

Apart from equity trusts, insurance bonds, property trusts, there are Australian superannuation funds that are a good example of managed funds.  Superannuation is a very good way to save money and invest for retirement purposes. Thanks to the Superannuation Choice legislation, the majority of employees can choose to nominate their own super fund, rather than accept their employer’s default fund. The Australian superannuation funds can be a great way to accumulate a huge wealth of savings for your retirement so that you can enjoy the same or even better lifestyle that you were enjoying when you were working.