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Investor Education > Investment Basics > Investment Types

INVESTMENT TYPES

There are a number of ways you can invest:

Managed funds

Also known as managed investments - managed funds are products which allow investors to pool their money with that of other investors in order to access a broad range of investments managed by a professional team which they might not be able to access individually.
 

ADVANTAGE DISADVANTAGE
A managed fund can automatically diversify your portfolio. The number of fees that can typically be paid in managed funds.

>> Learn more about managed funds
>> Ready to invest? Browse managed investments


Superannuation

Super is about generating wealth to ensure you have enough money in your retirement. Superannuation funds give investors the option to build and create wealth with managed investments with all contributions and earnings taxed at a lower tax rate.
 

ADVANTAGE DISADVANTAGE
It is a tax effective method for creating wealth for retirement because it receives concessional tax treatment. Can be subject to similar fees as managed funds and investors are usually unable to access your super money until you retire.

>> Learn more about superannuation
>> Ready to invest? Super investments


Allocated pensions

An allocated pension is a product that provides investors with a regular income from their superannuation savings. When you retire, your superannuation savings become available via an allocated pension. Depending on your pension fund, you can usually choose between annual, quarterly, monthly or weekly payments.
 

ADVANTAGE DISADVANTAGE
Investment earnings in pensions are tax free. You can continue to invest in managed investments to maximise your savings in retirement. As with all forms of managed investments, investors should beware of potential entry fees and adviser service fees.

>> Learn more about pensions
>> Ready to invest? Account based pensions


Separately Managed Accounts (SMA)

SMA's are an alternative to managed funds. A SMA is a customised share portfolio where the underlying shares are owned by individual investors. Your investment in a SMA is allocated across one or more existing investment models which have been provided by investment specialists. Separately managed accounts can be accessed with minimum investments as low as $5.000.
 

ADVANTAGE DISADVANTAGE
The securities in the account are visible and portable just as they would be if they had been purchased directly. SMAs are typically only available via an adviser who will mark up the fees on your investment. The fees can be as high as 3% per annum.

>> Learn more about separately managed accounts
>> Ready to invest? Blue Chip 20


Master Trusts

Master trusts allow investors to access products that they might not otherwise be able to access, like wholesale funds. In a master trust the ownership of the investments belong to that specific master trust.
 

ADVANTAGE DISADVANTAGE
They provide investors access to wider investment opportunities, including funds that investors might not be able to access individually, and advantages in administration and reporting. The investor may be limited to the investment options in his/her platform service and some of the investment platforms can attract high fees.

>> Ready to invest? Invest in master trusts

 

Wrap accounts

Wrap accounts consolidate various investments under one administrative umbrella. A wrap account is a custodial service with investments in various assets made under an individual’s name.
 

ADVANTAGE DISADVANTAGE
Provides the ability to invest in wholesale managed funds and direct share options – sometimes for as little as $100 per fund – and receive one consolidated tax report. Most wrap platforms are only accessible via an adviser and are traditionally associated with high fees.

>> Learn more about wrap accounts
>> Ready to invest? Direct access, low fee wrap accounts


Margin Lending

Margin lending can be best described as borrowing money to invest in shares or funds. The amount lent is governed solely by the value of the cash, shares and managed funds you offer as security.
 

ADVANTAGE DISADVANTAGE
The interest paid on the borrowed funds may be tax deductible. Whilst a margin loan can magnify your gains when markets are performing well, it can also magnify your losses when markets are volatile.

>> Learn more about margin lending
>> Ready to invest? Margin loans with discounted interest rates

Investments

Australian shares
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Property
Fixed income
Cash

 

Investment products

Managed Funds
Managed Accounts
Superannuation Funds
Wrap Accounts
Insurance Bonds

Strategies

St George Margin Lending
BT Margin Lending
Investment Bond
Sophisticated Investor Opportunities
Self Managed Super Funds

Fund managers

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Perpetual Wealthfocus
BT Investment Funds
MLC Masterkey
Spectrum Super

Australian Fund Managers

Investor Education

Managed investments
Superannuation
Separately managed accounts
Wrap accounts

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