Managed Fund Investments

Managed funds often suit investors who favour a hands-off approach in terms of the ongoing management of the investment, but are looking for diversification, professional management and initial choice of fund strategy. At Citibank, we offer investors the flexibility to invest in managed funds via two different methods:

• Direct investment in an individual fund
• Investment across a variety of funds and fund managers facilitated via a Wrap Account; an all-in-one investment hub where performance reporting and administration is managed on your behalf

As with all investments, managed funds carry risks. Some things to be aware of before investing in a managed fund are:

• The value of a managed fund is directly related to the value of its underlying assets, which is determined by market movement
• Units cannot be immediately converted to cash as redemption timeframes differ between funds; these can be found in each fund's Product Disclosure Statement
• Specific risks vary between funds and are dictated by the assets the fund's investment policy allows it to invest in. You should carefully examine the investment strategy, asset allocation and corresponding risks before investing in a fund

Instead of buying and selling individual investments yourself, it can be easier and more cost-effective to invest through a managed fund.

A managed fund is a collective investment scheme, in which the money of many investors is pooled to purchase investments as defined by the fund's investment policy. The purchasing power of the fund provides a high level of portfolio diversification, which minimises the impact of poor performance by a particular holding or market on your overall investment.