One of the golden rules of investing is diversification, but that can be difficult to achieve when you are just starting out, have limited funds, or simply feel that you don’t have the time, inclination or expertise to select your own investments in a crowded global market.
That’s why managed funds have long been popular; to provide diversification across and within asset classes in a single purchase. Problem solved. Except now investors have a new problem.
The range and variety of managed funds has grown exponentially as new technology has allowed for new types of managed funds. Traditional unlisted managed funds now compete with a groundswell of interest in exchange-traded funds (ETFs) and an old stalwart – listed investment companies (LICs) – along with the newer listed investment trusts (LITs).
