When it comes to investing, there are a lot of options to choose from. You can invest in equities, bonds, real estate, gold and more. You can also invest in these asset classes with a domestic focus or with a global focus. But if you are looking for a quality portfolio of global equities, one option to consider is the Global Equities fund offered by Itrust Invest.
This fund, via the Magellan Global Fund, invests in a portfolio of 20 – 40 leading companies from around the world giving you access to a diversified global investment portfolio. In this blog post, we discuss the benefits of investing in the Global Fund via Itrust Invest and why it might be a great long term investment option for a child.
Diversification
One benefit of investing in a Global Equities fund is that it offers diversification. The fund, via the Magellan Global Fund, invests in a core holding of leading companies from around the world and across various industries including communications, technology, and healthcare. So for every dollar you invest into the Global Equities fund, your contributions are spread across these 20-40 outstanding companies, giving you exposure to growth opportunities that you might not find by only investing in Australia.
The top five investments of the Magellan Global Fund on 31 March 2022 are as follows:
- Microsoft
- Visa
- Alphabet (i.e., Google)
- Pepsico
- Mastercard
Checkout our blog on Why You Should Invest In The World Stock Market for more reasons why it pays to look for Global investment opportunities.
Convenience
Another benefit of investing in the Global Equities fund of Itrust Invest is convenience. When you invest in the Global Equities fund of Itrust Invest via the Magellan Global Fund, you are entrusting the managers of the fund with the responsibility of selecting and managing the fund’s investments on your behalf. You are not required to research and select the individual investments yourself, freeing up your time and letting you get back to the things you love. And what’s more, an Itrust Invest account lowers the barrier to entry, so rather than fronting up $10,000 as an initial investment directly in the Magellan Global Fund, you can make your first contribution via your Itrust Invest account from as little as $10.
Ability To Beat The Index
The Global Equities fund of Itrust Invest via the Magellan Global Fund is an actively managed fund. Unlike a passive ETF, an actively managed fund selects the investments to be included in the fund based on comprehensive market research and their views of current and future market conditions. This can result in an actively managed fund outperforming its benchmark over the long term, whereas with a passive ETF, investors can only ever hope to achieve the returns associated with the benchmark index the ETF is tracking. Since inception in July 2007, the active management style of the Magellan Global Fund has outperformed the benchmark by 3.35% per annum. For more information on this, read about How We Use Actively Managed Funds To Your Advantage.
Conclusion
To wrap up, the Itrust Invest Global Equities Fund is a great investment option for those looking to spread their investment across multiple global companies at a low initial investment of just $10. The fund offers convenience and the ability to beat the index and is managed by a dedicated team of experienced professionals. The Global Equities fund is a great investment for a child who normally possesses a long-term investment horizon, as the fund has a proven track record of positive performance since first being created in 2007.