Managed funds rise in popularity
By Liam Egan
Managed funds are finding increasing favour with Australian households as a diversification strategy, according to the latest ING Melbourne Institute Household Savings and Investment Report.
The 2005 March quarter survey found new investment interest by households in diversified managed funds was substantially higher than in the two previous March quarter surveys, although it was down on the December quarter last year.
ING executive director personal investments Alexis George said the survey revealed households believe it is “important to have a diversification strategy in place, if and when the sharemarket moves into a downward phase”.
“They believe diversified managed funds are particularly useful in this phase as they give investors exposure to all four asset classes, all within the one fund.”
The survey also found households are becoming less risk averse in their investment outlook, with a higher proportion of households in the March quarter planning to invest new savings in shares and real estate than in the December quarter.
“In particular, the March quarter survey revealed the highest proportion of investors intending to invest in shares since December 2001 (10.7 per cent), suggesting they believe the strong performance of the sharemarket will continue,” George said.
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