Diversified funds
Get instant diversification for a small upfront investment

In an unpredictable world, diversification is still the single best way to reduce risk and smooth out investment returns. That's why a diversified managed fund is well worth considering, especially if you're just starting to build a portfolio.

A diversified fund spreads your investment across a range of different asset classes, such as cash, property or shares. So any underperformance in one asset class can be offset by gains in the others.

Even better, a multi-sector managed fund gives you instant diversification for a small upfront investment — often as little as $1,000 with a regular investment plan. So you can achieve the same level of diversification as a much larger portfolio while building wealth gradually over time.

Choosing the right fund for your goals

So which diversified fund is right for you? It all depends on your individual risk profile, including your investment timeframe and your appetite for risk.

If you're investing for a shorter term goal, like a home deposit, you may prefer a moderate or balanced fund, with 40% of your money in defensive assets like cash and fixed interest. But if you're still young and investing for retirement, then you may be able to take a more aggressive stance.

The aim is to choose a fund with an asset allocation that gives you the right balance between risk and return. In general, the higher the growth potential, the greater the risk.

Here are some typical asset allocations for diversified funds with different risk profiles:



Next steps

  1. Learn more about your asset allocation.
  2. Read about your risk profile.
  3. Compare and research managed funds.

Start saving now

It only takes minutes to switch your existing managed funds or life insurance policy to InvestSMART, but you can enjoy the savings year after year:

  1. Fill in our fast online form (for managed funds)
    OR
    Download our Broker form (for insurance)
  2. Print the form, then sign it and send it by:

    Email

    admin@investsmart.com.au

    Fax

    1300 880 260

    Mail

    InvestSMART Financial Services
    Reply Paid 4477
    Sydney NSW 2001
  3. You'll start saving straight away. And once every year, on the anniversary of when you switched to InvestSMART, you'll receive your trail commission rebate, either as a cheque or via electronic fund transfer (EFT).
  4. To receive your TrailCap payments via electronic fund transfer (EFT) to an Australian bank account - just complete the EFT section in the online application form.
    If you have already nominated InvestSMART as your fund broker and have been receiving TrailCap cheques from us but would rather your money is deposited directly into your bank account, you can let us know your EFT details in the InvestSMART EFT payments form.
Advertisement