FAQ's
What are managed funds?
Managed funds generally pool money from a large number of investors into a trust structure that is managed by investment professionals. This money is used to invest in a diverse range of assets that are not normally accessible to individual investors.
When you invest in a managed fund, you are allocated units in the fund. All units in the fund are of equal value. In general terms, the value of your investment is the number of units you own multiplied by the market price of the units.
NAB OnLine Trading provides you with access to the Product Disclosure Statement (PDS) for the managed fund you select.
You should also read the AUSIEX Financial Services Guide (pdf 97kb) for information about the fees that may apply when you invest in managed funds through NAB OnLine Trading.
What are warrants?
A warrant is a financial instrument issued by a bank or a financial institution and is traded on the ASX. Warrants may provide another way to gain exposure to a variety of underlying assets, such as shares, to achieve a desired result.
Investing in warrants can help you to:
- achieve leveraged returns
- diversify into a market or sector
- protect the value of your underlying assets
- earn extra income.
Because of the sophisticated nature of warrants, we recommend you take steps to make sure you fully understand the risks involved before deciding to invest.
Learn more about Warrants on the ASX website.
What are Exchange Traded Options (ETOs)?
An ETO gives you the right to buy or sell an underlying share at a particular price on or before a specific date. When you exercise the option, you take up your right to buy or sell the share.
ETOs may allow you to:
- hedge against a possible fall in the value of shares you hold
- earn income from the premium received by writing call options against your shares
- undertake to buy shares for less than their current price by locking in a buying price.
Due to their complexity, ETOs should only be used by experienced investors. We strongly recommend learning more about ETOs before deciding to invest.
Learn more about Futures & Options on the ASX website.
What are ASX-listed shares?
Shares broadly allow you to buy a part of a company. As a shareholder, you generally share in the company's performance in the form of profits which can be distributed to you as dividends and/or capital growth if the value of your shares increase. There are more than 1,700 companies whose shares are traded on the Australian Securities Exchange. These are called ASX-listed shares.
