Wednesday, November 9th, 2011 - Your Money Magazine
Managed funds are a popular option if you want to invest but don’t have the time or expertise to do it yourself. But are they worth it? According to Your Money Magazine, your cash might be better off staying in the bank.

The latest issue of Your Money Magazine compared the highest-ranking managed funds available in Australia and found the returns range from good to downright poor. Looking at the performance of a typical managed fund against a term deposit and the market index, Your Money Magazine shows you would need to keep your money in a managed fund for well over five years to even get close to a term deposit return.

Managing editor Jackie Pearson says global economic anxiety is also affecting managed fund performance, particularly in more volatile sectors.

“If you look at the average annual return by sector over the past five years, there are some pretty phenomenal swings and some are far from good,” says Pearson. “Based on recent market performance, anything above 4 per cent return is doing well.”

That’s not to say that managed funds are all bad investments. They can be a simple and cost-effective way to invest a small amount of money across a range of asset options with the potential to see decent returns in the long-term.

But if your money is sitting in a managed fund, Your Money Magazine warns you should review their performance regularly and if choosing a fund, look for sustained good returns between one and five years.

For more information on how different managed funds are performing and the latest investment news and information, see the latest issue of Your Money Magazine. On sale now at your local newsagent or online at

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Your Money Magazine

Your Money Magazine is for all Australians looking to increase their personal wealth and achieve the lifestyle they desire. Your Money Magazine’s key focus is to educate the Australian public about money management by providing down-to-earth, easy to comprehend content, detailed product comparisons across a range of categories, and recommendations from some of the country’s leading industry experts.

Combining in-depth research and product comparison tools with shrewd financial education materials Your Money Magazine takes a unique place in the Australian market allowing readers to not only compare existing products but to educate themselves and take decisive action all in one place.

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Kerry Corben
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