ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Make Your Money Grow Fast with Managed Funds Is The Worse Advice You Can Give To Your Children

Updated on January 19, 2015

Introduction

Once people realize that they must invest for their future, they are faced with bewildering array of options and quit, often, they are confused with which to choose. The world of investment is filled with so much financial jargon that confuse the average investors. It is my view to make it simple as possible to help you make your investment decisions. I will narrow the choice down to three options namely, cash shares and property all of which maybe be described as something completely as Managed Funds, superannuation scheme. But all of them boil down to cash, shares and property. This is by far the most important piece of advice you must have at the back of your mind before you embark on your investment journey. Armed with this information, you then decide to be a DIY (Do it yourself) investor or PSE (pay someone else) to do it for you.

Are you a DIY or PSE investor?

See results

This hub will guide you through the maze of pathways that lead to cash, shares and property. Please not that I am not a financial adviser. For detail financial advice, seek the appropriate bodies concern. All this information are practical guides from my experience so please use it at your own risk.

Managed Funds

Ever head of a common phrase “Money for the Rainy Day?”…superannuation, Annuities, Rollovers…I think this is what these funds will do for you. Although managed funds or managed investments as some call it may not be the greatest wealth generator, for many, these could be the only form of income when they retire.

Managed funds are exactly what they say that are. It means someone manages your fund for you. If you embark on this path, then you become a PSE investor. Good news is all the investing effort is taking care of by the fund manager (s). Bad news is, because someone uses his mind, time and expertise to manage your fund, the cream of your income goes to the fund manager. To make your money grow, you not only, though it is a good vehicle to start with, you must have better investment options that continues to generate wealth for you after retirement.

Before you go further, stop here and watch this video Rich Dad Poor Dad by self-made millionaire author and investor, Robert Kiyosaki. The Rich Dad Poor Dad book by Robert Kiyosaki has changed my whole perception of saving and investing. You need to understand and accept some facts covered in this video before you grasp the point of this hub.

Why do most people choose Managed Funds

Many people choose to be PSE investor simply because they think they lack the time, knowledge and skills to be a DIY investor. The reality I have come to know is that thinking is out right “Lie”. A lazy and poor man’s mindset. Why do I say this is a lazy or poor man’s mindset? Simply because a lazy or poor man would bother to read this hub. Not even read good investment books or watch a success video or attend a business seminar. This is the reality many are facing today. They want to be rich. They want to be financially free. They want to travel places, eat in finest restaurants, own a mansion, a handsome yacht, a Ferrari maybe and a handsome husband or a hot beautiful wife. Many call these “The Millionaire Dream”. Yet they live the very thing they are supposed to control to help them achieve their dreams to the hands of others, the fund managers, who take away the cream and give their owner of the money, just enough to keep him investing with the fund managers. Isn’t this the best way to make your money grow? Your money will certainly grow, but it won’t make you retire rich.

Personal Experience

When I started in residential property investment, I didn’t have the initial capital to begin with. But I didn’t let that get in my way. I operated a small online business that wasn’t making me enough money. So I decided to get a job. I decision I don’t regret. I saved enough and with small income from my business, I approached a local bank and got a loan to finance my first residential property. Many people think they couldn’t possibly afford a property with $200 000 price tag. But they go into getting loans to buy a car or other consumer goods. Many of the small loans, obtained frequently can add up to be the killer number of your future wealth.

DIY Vs Managed Funds

On the contrary. Direct investment in residential property does not require special specialty. I say that because you can start like I did. I just got in, studied the game and pick it up and played it myself. Isn’t that hard? Unless you are lazy, you can get fund managers to do it for you and get the cream of your investment and give you scraps. If you goal is to grow your money, than, I suggest you start with fund managers, save up some money and get out and become a DIY investor.

Returns from managed funds

How do managed funds compare to DIY investment? Look at this logically. Fund managers invest your money into cash, shares, or property, usually via trusts. So your money ends up where you could have invested it anyway, but with returns significantly reduced by the middleman. Fund managers are none other than middleman, if you don’t know. The question is, is this the way you want to grow your money to retire rich? I live this for you to decide.

Perhaps you are thinking fund managers are more capable of good investment decisions than you. Let me remind you what happened in 1987. The collapse of commercial property market left many funds dying natural death. There are some good fund managers around but finding them is like looking a grain of salt in the Amazon jungle.

At the very least, choosing managed investment is better than nothing. But farming your profits to all sundry along the route may not allow you to grow your money and retire rich.

Summary

Make Your Money Grow Fast with Managed Funds Is The Worse Advice You Can Give To Your Children. Why is this true? You realized in this very practical and straight forward hub that all decisions on investment boils down to cash, shares or property. What the fund managers do is to get your money, invest for you, get the cream of your investment and give you the scraps. Is this the best way to grow your money and retire rich? I let you decide.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      Open 

      3 years ago

      I think I have become a Christian in inenrmcets. I have come to see being saved not as an event but an ever maturing process. The way I react to every situation allows me to practice. I keep it simple with 2 rules: Never be the source of anyone's misfortune and never pass up an opportunity to perform an act of kindness.

    • profile image

      Barbara 

      3 years ago

      away an especial disuocnt on Market Samurai; The Best Keyword Research and Analysis Tool (Read my Market Samurai Review here). This disuocnt doesn't come from the Market Samurai guys. This disuocnt is directly from

    • Ian Dabasori Hetr profile imageAUTHOR

      Ian D Hetri 

      5 years ago from Papua New Guinea

      Thanks DDE. I guess most of it comes from my own experience. And yes, it takes education to make financial decisions like this.

      Thanks for your wonderful comment.

    • DDE profile image

      Devika Primić 

      5 years ago from Dubrovnik, Croatia

      Helpful information and well researched, on Make Your Money Grow Fast with Managed Funds Is The Worse Advice You Can Give To Your Children. One should consider reading this hub to know more about managing funds.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)