Where to find managed funds

One of the common questions in my DIY Wealth Creation course is “how do you find what managed funds are available?”

(For context: this question comes up when I recommend people start by investing indirectly rather than directly. It is an easy place to start with less to learn. Plus you can start with low dollar amounts and get a diversified portfolio.)

There are tens of thousands of managed funds licensed to operate in Australia. To my knowledge there is no single database of all the funds that is easily accessible to the general public.

Some places to start finding out about available managed funds  are:

  • Advertising (online, TV, radio)
  • In the financial media

In Australia the financial media that often provide limited lists of managed funds are:

  • The Australian Financial Review newspaper
  • The Business or Wealth sections of The Australian newspaper
  • Smart Investor magazine
  • Money magazine

Which ones?

But just knowing which ones are available is not enough. How do you make a smart choice of the ones that are right for you right now?

To wisely construct a portfolio of actively managed funds you need expertise plus time to research and apply your expertise. If you don’t yet have that expertise then you first need to invest time and energy in acquiring that expertise. Otherwise your portfolio construction will be little more than uninformed speculation.

Fortunately with managed funds there is a quick-start way that I recommend in my DIY Wealth Creation course. Start with index funds, which are also know as passively managed funds. Pick an index fund that is diversified – which means it invests in a blend of asset classes. Match the blend to your risk profile. For example: if your risk profile is aggressive you could choose a High Growth or All Growth index fund.

One of the largest retail index fund managers in Australia is Vanguard. (Also in the USA.) But most of the big brand active fund managers also have index based funds. So you can even pick a portfolio of index funds within most good retail superannuation accounts.