I am curious about what appetite the general investor population has for fixed interest managed funds? If the nature of the investment is:
Held at face value and redeemed at face value, like a term deposit. So if you invest $10,000, then you get $10,000 back on redemption
Interest is paid regularly to your nominated account, not reinvested.
How would you rank the following requirements?
Liquidity - how fast can you redeem your investment? 24 hours, 48 hours, 7 working days? or needs to be transferred to another investor? Frequency of payment - weekly, monthly, quarterly, six monthly? Nature of underlying investment - shares, property, fully hedged forex?
For example, if the fund was investing in property, you might require an interest rate of 3 basis points above prevailing mortgage rates, expect monthly payments, and would anticipate you need to sell the investment to another investor to redeem it. If the fund was investing in fully hedged forex, you might require an interest rate of 6 basis points above prevailing mortgage rates, expect monthly payments and would want to be able to redeem your investment within 48 hours.
What information would you need to understand risk? Things like? Property - valuation of property, debt held, rental contracts, etc Fully hedged forex - trading graphs indicating cash returns
