What Are Managed Funds?

This guide explains managed funds’ benefits, risks, and how 268 Fund can support your journey through strategic, property-backed investment options.

Introduction to Managed Funds

A managed fund allows multiple investors to pool their money into a single fund that an investment manager professionally manages. This structure enables even small-scale investors to access a diversified portfolio of assets, from shares and bonds to managed property funds, without needing to select or manage those assets directly.

Managed funds offer an efficient pathway for those seeking passive income, capital growth, or diversified exposure todifferent sectors. At268 Fund, weprovide customised managed fund solutions, particularly in mortgage andproperty-backed investments, designed to meet the needs of wholesale and sophisticated investors.

How Do Managed Funds Work?

Managed funds operate by pooling investor capital into a professionally managed investment portfolio. The fund manager then allocates that capital across various asset classes according to the fund’s strategy and risk profile.

Common Investment Types Include:

• Equities: Company shares offering long-term growth potential.
• Fixed Income Securities: Bonds and other assets that generate stable interest income.
• Property and REITs: Exposure to the real estate market without owning property directly.
• Cash and Term Deposits: Providing stability and liquidity.

The fund manager’s role is to research, select, and monitor investments, rebalance the portfolio as needed, and aim to maximise returns while managing risk. Management and performance fees apply, which investors should consider when comparing fund options.

Types of Managed Funds

Understanding the various types of managed funds helps investors align their strategy with specific goals and risk profiles:

• Equity Funds: Target capital growth by investing in listed company shares.
• Fixed Income Funds: Prioritise capital stability and regular income through bonds.
• Property Funds: Invest in commercial or residential real estate or through REITs, which are ideal for gaining exposure to the property sector.
• Balanced Funds: Offer diversified exposure by combining shares, bonds, and property in one fund.
• Index Funds: Passively track a market index such as the ASX 200, offering low-cost market exposure.

268 Fund focuses primarily on managed property funds, offering income-focused strategies that deliver strong returns with a focus on asset-backed security.

Benefits of Investing in Managed Funds

There are many benefits of managed funds that appeal to both novice and sophisticated investors:

1. Diversification

Managed funds spread your investment across multiple asset classes and sectors, reducing risk tied to any one company or industry.

2. Professional Management

Your investment is overseen by skilled fund managers who adjust portfolios based on market performance and economic indicators.

3. Accessibility

You can invest in a managed fund with a $200,000 investment, making it easier to start building a diversified portfolio.

At 268 Fund, we further support informed investing with tools like our Investment Calculator, which helps you estimate returns based on your investment horizon and capital.

Risks of Managed Funds

Like any investment, managed funds carry risks that investors should carefully consider:

• Market Volatility: The value of assets held within the fund can rise or fall depending on market conditions.

• Performance Risk: Returns are not guaranteed, and past performance is not a reliable indicator of future results.

• Liquidity Risk: Some managed funds, particularly those backed by property or other real assets, may have withdrawal restrictions or longer redemption timeframes.

Understanding the risks of managed funds is essential before investing. At 268 Fund, we prioritise transparency by outlining potential risks clearly in our Information Memorandum (IM) and Supplementary Information Memorandum (SIM). We work with wholesale investors to help ensure that investment opportunities align with their financial objectives and risk tolerance.

Why Choose 268 Fund for Managed Fund Investments?

At 268 Fund, we’re not just another investment provider. We’re a specialist in managed property funds, offering:

• Variety of mortgage and equity-based investment solutions with a strong focus on capital preservation and regular income.*
• Rigorous risk management protocols, including conservative loan-to-value ratios and secured lending strategies.
• Full transparency, backed by a 100% track record of capital and interest repayments since inception.*

We also offer strategic investment options through our Equity Investments platform, providing alternative access to Australian property markets with structured returns and defined exit strategies.*

Want to see how our investment structures align with your retirement planning? Explore how managed funds can form part of your SMSF investment strategy, enabling you to grow your superannuation with confidence and control.

Key Considerations Before Investing

Before investing in a managed fund, consider these important factors:

• Your Risk Profile: Choose a fund that matches your financial goals and tolerance for market fluctuation.
• Fees and Costs: Understand management fees, entry/exit fees, and how these impact net returns.
• Investment Horizon: Some funds are suited to long-term investors, while others offer shorter-term opportunities.
• Manager Experience and Track Record: Evaluate the expertise of the fund manager and their historical performance.

At 268 Fund, we encourage all investors to engage in careful due diligence and take advantage of our consultative approach.

Explore Managed Fund Opportunities with 268 Fund

Managed funds offer a powerful way to diversify, grow, and protect your wealth, especially when backed by the security of property and the experience of a trusted fund manager.

Whether you’re looking to generate income, preserve capital, or complement your broader financial strategy, 268 Fund offers investment solutions built with your goals in mind.

Contact us today to discuss your needs and explore how our managed fund offerings can help you invest with confidence. You can also explore our Equity Investments, use the Investment Calculator to estimate potential returns, or learn how managed funds support your SMSF investment strategy.