Benefits Of Investing In Managed Funds

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Investing in Managed Funds 

Managed funds are a practical way for Irish investors to build long-term wealth. With access to expert fund management, global markets, and tax-efficient growth through gross roll-up, they offer a strong foundation for savings, pensions, or general investing.

What Is a Managed Fund?

A managed fund pools your money with other investors to invest in a broad range of assets like:

•  Equities (Shares)

•  Bonds

•  Property

•  Cash or Alternatives

  
  

This diversification helps spread risk while aiming for steady growth or income over time.

Understanding Risk and Return

Irish investment platforms use a risk scale from 1 to 7. Here’s how it works - with sample return ranges:

Risk Level	Typical Asset Mix Estimated	Annual Return*
Very Low Mostly	cash or deposits	1%–2%
Low Short-term	bonds some cash	2%–3%
Low to Medium	bonds + small equity exposure	3%–4%
Medium Balanced	mix (equity/bond/cash)	4%–6%
Medium to High	higher equity mix	5%–7%
High Primarily	equities	6%–9%
Very High	100% equities, emerging markets

*Returns are historical estimates. Actual returns may vary and are not guaranteed.

The Advantage of Gross Roll-Up

One of the biggest benefits of investing through an Irish managed fund is gross roll-up. This means:

• No annual tax on dividends, interest, or gains within the fund.

• Returns are reinvested tax-free until you cash out or reach every 8th year “deemed disposal” point.

• Maximises the effect of compounding over time.

  
  

This allows your money to grow faster compared to taxable investments.

How Compounding Works in Your Favour

When your investment grows, and that growth is reinvested, it generates even more returns - this is compounding.

Example:

• A €10,000 investment at 6% annual return over 20 years:

• Without gross roll-up (taxed annually): ~€22,300

• With gross roll-up: ~€32,100

  
  

That’s nearly 45% more, simply by deferring tax.

Why Managed Funds?

• Range of risk levels to suit all investors.

• Access to global markets and professional management.

• Gross roll-up for tax-efficient growth.

• Long-term compounding effect.

• Regular contribution options (monthly top-ups).

Is It Right for You?

Managed funds suit investors who want:

• Hands-off investing.

• Flexible risk/return options.

• Long-term growth.

• Tax-efficient wealth building.

Summary

Whether you’re conservative or growth-focused, Ireland’s managed funds offer a powerful mix of professional management, gross roll-up, and compounding to help your money work harder over time.

Contact us today and book your consultation and see how Quigley Financial Brokers can help you choose the best options available.