Why unlisted managed funds are a great investment for employees
Many employees are not aware of the benefits of investing in unlisted managed funds. These types of funds offer a number of advantages, including the potential for higher returns and greater flexibility.
What are unlisted managed funds?
unlisted managed funds are investment vehicles that are not traded on a stock exchange. Instead, they are only available through a limited number of investment platforms or directly from the fund manager.
Why invest in unlisted managed funds?
There are a number of reasons why employees should consider investing in unlisted managed funds.
- The potential for higher returns
Unlisted managed funds have the potential to generate higher returns than listed funds. This is because they are not subject to the same level of regulation and disclosure requirements. As a result, they can take on more risk, which can lead to higher returns.
- Greater flexibility
Unlisted managed funds offer greater flexibility than listed funds. For example, they can invest in a wider range of assets, including illiquid assets such as private equity and property. This gives them the potential to generate higher returns than listed funds.
- Access to exclusive investments
Investing in unlisted managed funds gives employee share scheme access to exclusive investments that are not available to the general public. For example, many unlisted funds invest in private companies that are not listed on a stock exchange.
- Professional management
Investing in unlisted managed funds gives employees access to professional fund managers. These managers have the expertise and resources to generate superior returns.
- Diversification
Investing in unlisted managed funds helps employees to diversify their portfolios. This is because they can invest in a wide range of assets, including illiquid assets such as private equity and property. Unlisted managed funds are also more flexible than other superannuation products, as they allow employees to change their investment mix as their needs change.
- Tax advantages
Investing in unlisted managed funds can offer a number of tax advantages. For example, many unlisted funds are structured as trusts, which can offer tax breaks. Managed funds hold a broad range of investments, which can protect you from the volatility of investing in a single asset.
- Access to capital
Investing in unlisted managed funds gives employees access to capital that they would not otherwise have access to. For example, many unlisted funds invest in illiquid assets such as private equity and property. This gives them the ability to generate superior returns.
Conclusion
Investing in unlisted managed funds is a great way for employees to boost their investment returns.
