UrgentFinance Assignment, Managed Funds Colonial First State Product

UrgentFinance Assignment, Managed Funds Colonial First State Product Urgent:Finance Assignment, Managed Funds: Colonial First State Product Disclosure Statement â€" Essay Example > 15 April 2009Managed Funds: Colonial First State Product Disclosure Statement1) Colonial First State, over the years has become Australia’s leading wealth management groups, with more than 170 billion Australian dollars under management globally. The primary reasons that have propelled the company thus far have been (a) strong investment performance (b) efficient administration (c) value for money (d) award winning service and above all being passionate about what they do. Irrespective of the size of customer investments their financial well being has always been dedicatedly taken care of. Source: Company information: Colonial First State website, Question 1.Some of the products are (i) FirstChoice Investments (ii) FirstRate Saver (iii) FirstChoice Margin Lending (iv) Cash Management Trusts â€" For Investors (v) FirstChoice Personal Super (vi) FirstChoice Employer Super (vii) Rollover Superannuation Fund â€" For existing Colonial First State investors (viii) FirstChoice Pension. Source: Product Education: Colonial First State website, Question 1.2) In a managed fund, money from multiple investors is pooled together. According to the investment objective, this fund is then professionally managed. By pooling money together in this form with other investors one may take advantage of the investing opportunities that otherwise is not accessible to an individual investor. Whenever one invests in a managed fund he/she is allocated a certain number of units based on the unit price prevalent at the time of investing. The units allocated represent the value invested which might rise or fall based on the rise or fall of the market value of the assets in the fund. The diversification that managed funds offer is their primary attraction. If one wanted to invest in shares and only had $ 1000, then in reality one could actually invest in only one company. If this company performs badly then one could lose the entire money. This also applies to property trusts. If inve sted in property trusts, then shopping centers, office complexes etc can be focused on. If deciding to invest in managed funds with a regular savings plan, since each month a fixed amount is contributed, managed funds can be a simple savings method. Investment in a managed fund also gives one the benefit of services of a professional fund manager. Listed ones can be traded on the stock market and have a market value determined by supply and demand. They are valued at least weekly by the fund manager. Source: Guide: Managed funds â€" www. moneymanager. com. au, Question 2.$1000 is the minimum investment that can be made. There is no minimum to the additional contribution one can make to the initial investment. Unless otherwise specified any additional investments will attract the same fee as one’s previous investment. Information is to be furnished as to how the additional investment is to be allocated. $100 is the regular monthly investment plan. On the first business day after 19th of each month, funds are drawn from the investor’s bank account. Subject to minimum account balance requirement, there is no minimum withdrawal amount limit one can make. Cheque or previously nominated banks can be the mode of withdrawals. Requests for withdrawal received prior to 3.00pm (Sydney time) on a New South Wales business day will be processed at the day’s unit price. Within seven working days payment is generally made normally. Withdrawals can be suspended under extraordinary circumstances. $100 is the monthly regular withdrawal plan. On the last business day before the 21st of each month or quarter funds are drawn from the investment and deposited in the nominated bank account. If withdrawals reduce the balance of funds from which one is withdrawing to zero then the regular withdrawal will stay cancelled