Investing in shares can be done either through direct share trading or through a managed fund. While both approaches have their advantages, investing in shares through a managed fund has some distinct benefits.

One of the key benefits of investing in shares through a managed fund is diversification. Managed funds allow investors to spread their investments across a range of shares, reducing their overall risk exposure. This is because managed funds pool the funds of multiple investors, enabling them to invest in a larger and more diversified portfolio of shares than an individual investor could.

Another benefit is professional management. Managed funds are typically managed by experienced investment professionals who have the knowledge and expertise to make informed investment decisions on behalf of investors. This can be particularly beneficial for investors who do not have the time, knowledge or inclination to manage their own investments.

In addition, investing in shares through a managed fund can be a more cost-effective approach compared to direct share trading. Managed funds benefit from economies of scale, which can help reduce costs associated with trading, research, and administration.

Overall, investing in shares through a managed fund provides investors with access to a diversified portfolio of shares, professional management, and potential cost savings, making it an attractive option for many investors.

Investing in shares through a managed fund offers several benefits compared to direct share trading. In a managed fund, a professional fund manager makes investment decisions on behalf of investors, which can be advantageous for those who lack time, expertise, or confidence in managing their own portfolios. Managed funds provide instant diversification, as they pool money from many investors to buy a wide range of shares, reducing the risk of poor performance by any single stock.

In contrast, direct share trading requires individual research and monitoring of specific stocks, which can be time-consuming and risky for less experienced investors. Managed funds also offer lower transaction costs, as fees are spread across many investors. Additionally, they offer access to asset classes or markets that might be difficult for individual investors to reach. However, managed funds charge management fees, which may affect overall returns over time.