Investing Foundation Series III - Managed Fund Investing

One tactic of investing with shares is with a managed fund. A Managed fund is an investment that pools your money together with other investors.

The fund holds different asset classes – divided into shares, property (growth assets), bonds, cash & term deposits (fixed interest).

This investment is called a ‘portfolio’ with the proportion of each asset called “asset allocation”.

Money is a means to the end, not the end goal. It is the use of your money for your values. Carl Richard illustrates this perfectly with his New York Times sketch.

To work out these values requires an investigation(interrogation) of yourself. One method is asking, "What is important about money to you" and where the answer is the next question.

For example, What's important to you about " money" --> enjoying life...So what's important to you about enjoying life--> experiences -->So what's important to you about experiences and continuing down the rabbit hole until you you can not go any further. See the below link for further explanation.

What's important about money to you? - Behavior Gap

Another method is asking the 3 Kinder Questions from the founder of life planning. It is better if I don't explain this and you go through the process(see below)

Life Planning: The three kinder questions - The Physician Philosopher

Once you identify your values, the next step is to make an Investment Policy Statement.

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