- Retail managed funds
Designed to cater for individual investors, a broader marketplace, with minimum investment amounts ranging from A$1,000. Some even offer regular savings plan options.
Common types of retail funds includes mutual funds and exchange-traded funds (ETFs).
- Wholesale managed funds
Designed to cater for professional investors with significantly higher minimum investment amounts, typically in excess of A$500,000 per fund.
- Different type of investors
Retail funds are intended for retail investors who are ordinary investors, while wholesale funds are intended to wholesale investors or institutional investors.
- Different minimum balances
Retail funds are easier to access with its low minimum balances, while wholesale funds have hefty minimums.
- ASIC registered or not
Wholesale funds are not required to be registered, while retail funds are required to be registered.
- Different fee structure
The fees charged by a wholesale fund are usually lower then a retail fund. Generally, it is easier and cheaper to structure and promote a fund as an unregistered fund compared to a registered fund.
Tanggram Investment Fund, for instance, is a registered retail fund. It has a far more onerous undertaking with a multitude of compliance, governance, audit and reporting requirements which are not required for an unregistered wholesale fund. For more information please refer to the Tanggram website.
All contents presented in this blog have been prepared for informational purposes only, and are not intended to provide, and should not be relied on for any personal investment, tax, or accounting advice. You should, before making any decision regarding any information, strategies or product mentioned on this blog, consult your own financial or accounting advisers to consider whether the product is appropriate for you, based on your own objectives, financial situations and needs.