Should I invest directly, or try a managed fund?

Managed funds are growing in popularity as an investment option, as more and more people get the appeal of letting a professional call the shots. So, given the choice, should you opt for a managed fund, or is it better to just invest in an asset directly?

You'll no doubt have noticed by now that we don't take sides, and nothing's binary about spreading risk. Direct investment may bring more control and transparency, but Managed Funds give you access to expertise, and convenience. Let's explore the benefits of both in greater detail.

Direct investing generally gives you more control and flexibility over your investment decisions. This means, you say why, what and when you invest in something, which is likely to be more closely aligned with your individual investment objectives, and ultimately delivers the satisfaction (and sometimes, the profits) of a more personalised approach.

When you buy into a managed fund, it's rare for a manager to automatically share the finer details of their individual moves and positions with their investors. Their specific strategy is what you're buying into, and if they share their plans too widely, you won't benefit from a competitive edge for very long! From a tax perspective, you may have less control over the timing and realisation of capital gains and losses. This may come as a big relief, if you'd find the level of detail a burden, or overwhelming - but it's an important factor to consider.

Leveraging an individual with more experience on the field is one of the biggest draws for Managed Funds. You're not just paying for admin and active monitoring of your investments, decision-making comes with its own set of pressures - especially when the market is unpredictable - and few of us have the time, outside our day jobs, to do the level of research that would make us feel comfortable and confident in our choices.

Balance is the key to successful investing, and depending on the fund you choose, Managed Funds can bring exposure to a range of asset classes, investment types, risk profiles, and markets, without any of the heavy lifting. The market is always changing, and with the growth of new opportunities like Exchange Traded Funds and socially responsible investing, you can rest easy knowing it's someone else's job to keep up.

The truth is, both direct investments and managed funds have their pitfalls, as well as their positives. Exposure to a range of investment types is diversification at its finest, so if you're still on the fence, perhaps it's a question of balance, rather than a binary decision, for you too.

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Sisters Ali & Gaby Rosenberg are the co-founders of Blossom App.