What sectors are invested in?
Each fund is different, and may concentrate on Australian shares, international shares, property, cash, bonds and fixed interest investments, or a mix of several of these areas. The prospectus for each fund will detail what sectors are being targeted. Some funds choose stocks that will closely resemble the All Ordinaries Index, in order to achieve a return comparable to the total market. Others choose specific stocks based on their underlying potential, aiming to “outperform” the market. Each prospectus may contain information about a number of funds offered by each fund manager, each covering a different mix of investments.