06.Checklist
Use the answers to these questions to compare similar funds. Most of the information can be found in the fund’s product disclosure statement (PDS).
- What are the manager’s risk and return objectives, as stated in the product disclosure statement, and do they match your investment strategy?
- What has been the short, medium and long-term performance of the fund, and does it match the manager’s objectives?
- How volatile is the value of the investment and does this match the manager’s risk objectives?
- Are there any current issues you should be aware of, such as key staff leaving the fund manager? A financial adviser might be able to tell you.
- How easy would it be to get your money back? Can you request withdrawals by phone or online, how long does it usually take, is there a minimum account balance and in what amounts can you redeem money? Can the manager apply a waiting period before processing your withdrawal request?
- What fees are involved? Use the fee calculator to keep track of them.
- Is it possible to switch your money to another fund with the same manager, and would you have to pay a fee for this?
- What’s the minimum initial investment and what are the minimum amounts you can add to it?
- Can you make regular extra contributions (a savings plan)?
- How often does the fund manager distribute income and can you reinvest this in the fund?
Managed funds and tax
Taxation is a complex issue, for example only 50% of the capital gains is taxed for some funds’ returns. Check with your financial planner, accountant or tax adviser whether a fund is suitable for your tax requirements.