Managed Funds

Direct investment in individual shares on the stock market requires research and close monitoring, and it is hard to gauge the degree of risk you are undertaking - you may instead wish to consider investing in the share market via Managed Funds.

Managed funds have three distinct advantages over direct share ownership;

• greater diversification with use of less capital,
• shares are selected by professionals drawing on rigorous company analysis, and
• less administration - the tax on your investment is sorted out for you.

Diversification means owning a variety of shares and investment types from different industry sectors, so in the event of a major fall in the share price of one company, your entire savings are not threatened.

There are a range of managed funds that invest in NZ shares, as well as many that are NZ and Australasian based but are in invested in other assets such as property, international shares and hedge funds.

The return on share investing through a fund will be reduced by the fees paid to professional managers and tax paid by the funds. But as the tax and other administration on your investment is calculated and paid for you, there is less ongoing administration for you.

There are hundreds of funds to choose from, so there is sure to be one or more out there that meets your requirements. Please contact us to find out more about investing in managed funds as part of your investment portfolio, and which managed funds may be right for you.

At Broadbase International we specialise in providing expert, impartial financial advice for Brits in New Zealand and Kiwis returning from the UK. Don't hesitate to contact us if you have any questions about New Zealand investments, and remember to ask for a free copy of our comprehensive New Zealand Guide.