A managed fund is simply a type of investment where a number of investors pool their money into one fund which is then invested by an experienced fund manager. A managed fund invests in a wide variety of assets including equities, property and government bonds. This combination of different types of assets aims to reduce the overall level of risk your investment is exposed to while working to deliver excellent capital growth over the long term.

Different types of Managed funds
RaboDirect offer 53 managed funds covering the main asset classes:

• Cash (e.g. a RaboDirect savings account)
• Bonds (e.g. a loan to the government or a large company)
• Property (e.g. residential or commercial property)
• Equities (e.g. shares in companies) 
• Mixed (e.g. invests in both bonds and equities)
• Specialist  (e.g. focuses on one specific sector e.g Healthcare, Mining etc)

Each time you invest in a managed fund you will be issued with 'units'. These units represent your share in the fund(s). As the price of these units increases, so does the value of your investment, depending on the value of the underlying investments. However, nothing is guaranteed and sometimes they can also reduce in value. Remember, past performance is not a reliable guide for future performance.

Check out our range of managed funds

If you are interested in investing but do not have the time, resources or energy to research and track all the different investment funds out there then managed funds could be right for you. The key benefits of investing in manage funds are:

• Diversification: Managed funds enable you to invest in a diversified portfolio of investments beyond what most investors could achieve themselves. From as little as €100, these investments may be spread across single or multiple asset classes, reducing the volatility of the overall investment and the impact of a fall in the value of any one asset.

• Professional Money Management: Pooling funds with other like minded investors allows a fund manager to spread the investment mix, which helps lower investor risk. Additionally, the assets available within a managed fund allow the fund manager to invest beyond the financial capability of the individual investor. Once you choose which fund is right for you, the  fund managers will constantly research and monitor investment markets to find the best opportunities.

• Performance: Managed funds offer the potential to earn returns above the market benchmark of each respective asset class. With a team of professional investment managers constantly looking for the best opportunities, a fund can offer you the potential to earn returns superior to what they might be able to achieve on their own.

• Liquidity: You can get access to your money whenever you like.
  Convenience-It takes time to manage a diversified portfolio of investments. You need to research the market, implement transactions and consult with stockbrokers, accountants, tax specialists etc. A fund manager can undertake all the necessary management tasks on your behalf.
  Economies of Scale: As managed funds pool investors' money they typically have the buying power of millions of euros. This allows them to take advantage of investment opportunities that are not generally available to individual investors.
  

We believe you are the best person to determine which of our managed funds is right for you. But we do provide you with lots of literature in plain English and some helpful investment wizards to help you reach your decision. If it is your first time investing, you should also consider the following:

1. Define your investment time horizon - how long do you want to invest for?
2. What are you financial goals - what are you investing for?
3. Understand you risk tolerance and the risks associated with each of the managed funds.
4. Combine your goals, time horizon and risk tolerance and find a managed fund that matches these objectives.

We've come up with an easy way for you to define your investment profile. Using the investment wizards, simply work out your risk profile, and see a portfolio allocation designed with your goals in mind.

• Start your Online Investments from €100
• Low entry & exit fees
• Access your investment whenever you want it
• 24/7 access to top rated Investment Funds
• Local and global Investment Funds
• Morningstar and S&P ratings

As the straight-talking bank we think it's important to highlight that all investment funds have an element of risk and some require the investor to remain in the fund until maturity to realise their full earnings potential or protect your capital. This is worth considering if you think you might need access to your money in the near future or you're not completely comfortable with the risks involved.

If you're still not sure whether investing is right for you, you can take our What type of investor am I? questionnaire or you might wish to talk to an independent financial adivsor.

Don't worry, we'll still be here when you've decided what's best for you, and remember, we have some great savings and term deposit accounts if you think saving's a better option for you right now.