Asset sectors

When you invest in a managed fund, you buy 'units' in that fund. In practice, when you buy units you are buying assets. These assets have worth, and determine the value of your units at any given time. Check out the types of assets that you can choose below.

Asset sectors: features at a glance

	Shares	Listed property	Bonds	Cash
Asset style	Growth, core or value assets	Growth assets	Conservative investment	Conservative investment
Income stability	Relatively stable income	Relatively stable income	Stable income stream	Stable income stream
Returns	High potential long-term returns	High potential returns	Relatively low returns	Relatively low returns
Risk	Higher risk	Higher risk	Generally lower risk than shares or property	Generally lower risk than shares or property
Inflation	Above inflation	Above inflation	May be eroded by inflation	May be eroded by inflation
Liquidity	Liquid – easily bought and sold	Liquid – easily bought and sold	Generally a pre-set maturity date	Liquid, but may have set periods
Find out more	View Asset classes in our 'Investment basics' section.

Diversify within sectors

Managed funds often specialise in one asset sector, such as shares or property. Even though they are tied to performance within that sector, they can reduce your risk by including a range of investment options offered by that sector.

Diversify across sectors

Managed funds spread their investment focus across sectors. That means if the value of one asset sector such as shares goes up, while another sector such as property trusts takes a downturn, the dips and rises are smoothed out across your investment portfolio.

Find out more about investment

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Learn about BT's managed funds.