Diversify with Mutual Funds

The shares you own only represent your portion of the fund's portfolio holdings and not the underlying investments.

Yes. Mutual Funds are managed by a fund manager that will determine how the investors' pooled money is invested. To get a better understanding of the fund and whether it aligns with your investment strategy, every fund must provide a Key Investor Information Document, better known as a KIID, to give you the important information you need.

Actively managed mutual funds are run by a fund manager and team of analysts. They choose the fund’s investments, making changes as needed to keep the fund performing as well as possible. These funds aim to outperform broader markets and other competing funds, although there are no guarantees.

Passively managed mutual funds, also known as 'tracker funds', take a different approach. Rather than trying to do better than the market, they track an index representing it, so their performance is tied to the ups and downs of the market they're following. Both types have their advantages. With no active manager or analysts to pay for, passive funds usually have lower fees, but there’s also little potential for outperforming the market.

Mutual Funds will charge a management fee, which is commonly known as a 'Fund charge', which can vary in percentage depending on the Mutual Fund. You can find out the fees of a Mutual Fund in the Key Investor Information Document (KIID).

Using the CMC Invest app you can place the buy and sell order for a Mutual Fund whenever you want, at any time. However, Mutual Funds are priced once a day and the dealing in Mutual Funds are different to ETFs. For more information read our article here.