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Benefits and risks of investing in mFund

mFund is a popular and relatively easy way for individuals to invest in managed funds. Investing in managed funds carries risks to consider

Benefits of using mFund

mFund is a popular and relatively easy way for individuals to invest in managed funds. One transaction can give you diversification across different asset classes and market sectors and access to investments that may otherwise be out of reach.

Managed funds can help you diversify your portfolio across asset classes, sectors and geographies that otherwise could be difficult to access. There are managed funds that cover international shares, emerging markets, specific sectors, corporate bonds, government and semi-government bonds and commodities.

For example, if your portfolio is comprised primarily of Australian shares, you can easily diversify your portfolio by adding an mFund that covers international shares.

Risks of using mFund

You should keep the following risks in mind when considering investing in mFund. These risks are the same as investing in managed funds in general. These include currency risk, gearing risk, short-selling risk and emerging market risk.

While investing in managed funds provides access to different asset classes and industry sectors, there is always a risk that the managed fund investments may underperform or decline in value. This will affect your return.

 

Invest carefully

You should carefully examine the investment strategy, asset allocation and the manager’s track record before investing. While ASX facilitates access to mFunds through the mFund Settlement Service, it is not the provider of mFund products and offers no guarantee over their performance. You must be given the product disclosure statement associated with each mFund product and make your own investment decisions. You should also seek professional financial advice.

ASX acknowledges the Traditional Owners of Country throughout Australia. We pay our respects to Elders past and present.


Artwork by: Lee Anne Hall, My Country, My People

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