Make your stock picking easier with these fund management superstars

Take advantage of their investing skill and experience for better return potential.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Have you ever thought that maybe you want to spend less time on investing and have more time away from business matters to enjoy life? Even long-term value investors need a break, too.

However, you may not want to turn all of your savings over to a financial advisor. One way to take some of the effort and guess work out of choosing stocks is to invest part of your portfolio in fund management companies.

Apart from share trade brokerage commissions, you don't have to worry about management fees because you aren't their customer. You are a shareholder and get a return from their stock picking success.

They do what they're good at and you have more time for your reading or weekend bungee jumping.

Platinum Asset Management Limited (ASX: PTM) has investment funds that specialise in international equities. With overseas markets like the U.S. recovering, it stands to get a better return now than during the GFC.  Its share price has risen about 38% in the past 12 months, so that's a great start.

The financial services provider IOOF Holdings Ltd (ASX: IFL) offers annuities, superannuation and other financial products as well as investment fund management. For shareholders it has a 5.1% dividend yield. In the past three years the total shareholder return was an average annual 13.1%.

You can also tap into the investing skills of Magellan Financial Group Ltd (ASX: MFG), which catapulted onto the investment stage with a huge rise in income and net profit in 2013.

Its share price shot up from about $1.60 to $13.48 in about two years. Its dividend yield is 1.6%. Its funds deal in international equities.

Foolish takeaway

You don't have to worry about choosing a defensive or aggressive strategy for this kind of investment. You simply get a part of their steady earnings through dividends and benefit from any share price appreciation over time.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »