What are Selfwealth Managed Investments?
Selfwealth Managed Investments are diversified investment portfolios constructed and managed by Selfwealth’s investment team. You do not select or trade the underlying investments yourself. Your money is invested through a Managed Discretionary Account (MDA), a regulated structure used by digital investment managers in Australia.
The Managed Investment service is provided by Selfwealth (AFSL 421789). Selfwealth is the MDA provider and is responsible for day-to-day portfolio management and trade execution on your behalf.
What is a Managed Discretionary Account (MDA)?
A Managed Discretionary Account is an investment service where you authorise a professional investment manager to make investment decisions on your behalf, according to a pre-agreed Investment Program.
Here’s how it works:
- You complete a digital advice journey covering your financial situation, goals, and risk tolerance.
- Selfwealth issues a Statement of Advice (SOA) with a personalised Investment Program recommending portfolios suitable for your objectives.
- You enter into an MDA Contract, agreeing to the recommended program.
- Selfwealth manages your portfolio, including executing trades, rebalancing, and reinvesting, without needing your approval for each transaction.
You can view the composition and value of your portfolio at any time in the app, and you can withdraw your funds at any time with no exit fees.
What does the MDA service include?
- Portfolio construction and management. Selfwealth’s investment team selects the underlying investments, executes trades, and monitors the portfolio on an ongoing basis.
- Rebalancing. Market movements cause portfolios to drift from their target allocation over time. Selfwealth rebalances your portfolio to keep it aligned with your Investment Program.
- Individual account tracking. Your assets are tracked and managed as a discrete account according to your Investment Program. Your tax position is not affected by the activity of other investors, which can occur in pooled managed funds.
- Income and distributions. You are entitled to all income and distributions attributable to your portfolio, including franking credits on eligible Australian ETF dividends. Tax outcomes depend on your individual circumstances; consult a tax professional for guidance specific to your situation.
What does Selfwealth invest in?
The Managed Investments invest in ASX-listed Exchange Traded Funds (ETFs). Each portfolio is constructed to a defined investment objective set out in its Investment Program.
Can I choose which stocks or ETFs are in my portfolio?
No. Under the MDA structure, Selfwealth has discretion over investment selection, asset allocation, and rebalancing within your agreed Investment Program.
How do I know which portfolio is right for me?
Recommendations are provided only through the digital advice journey. When you complete the suitability assessment, you receive a Statement of Advice setting out which portfolio is recommended for you and the basis for the recommendation. The information in this Help Centre is factual information only and is not a recommendation of any portfolio.
Does it cost to set up a Managed Investment portfolio?
No, there is no cost to set up a Managed Investment portfolio with Selfwealth. The digital advice assessment and Statement of Advice are free, and there is no minimum or maximum investment amount, nor are there transaction fees or lockups.
Once funded, your portfolio is charged a small ongoing management fee, calculated daily and deducted monthly. The rate depends on your pricing tier. See our pricing page for more information.
Will Selfwealth offer growth or higher yield portfolios?
We currently offer Cash+, Income+ Defensive and Income+ Enhance. We are planning on launching additional portfolios soon, and Selfwealth customers will be first to know when they become available.
What is the difference between a Managed Investment and buying ETFs myself?
Both let you invest in ETFs. The key difference is who does the research, manages your portfolio and makes the day-to-day investment decisions.
With a Selfwealth Managed Investment, our global investment team builds and manages a diversified ETF portfolio in your assessed risk profile. We research and select ETFs based on quality, cost and diversification, drawing from across the market. We continually monitor your investments and review existing ETFs and new alternatives to keep your portfolio aligned with its objectives.
The ongoing work is handled for you. Your portfolio is automatically rebalanced when needed, and dividends are reinvested. When markets rise or fall, investment decisions follow a consistent, disciplined approach rather than reacting to short-term headlines. Your portfolio will still experience market ups and downs, but you don't have to make every investment decision yourself. There are no brokerage fees on Managed Investment trades. Instead, you pay an ongoing management fee.
When you buy ETFs yourself, you're in full control. You research and choose each ETF, set your own asset allocation, keep track of new products, and decide when to rebalance or reinvest. In volatile markets, it's up to you to decide whether to stay the course, buy more or sell, which can be challenging when prices are falling. There's no portfolio management fee, but standard brokerage fees apply to each trade. Underlying ETF management fees apply to both approaches.
You don't have to choose one or the other. You can use a Managed Investment as the foundation of your portfolio while continuing to buy and sell your own shares and ETFs, all within your Selfwealth account.
Which approach is right for you depends on your circumstances. Our digital advice assessment or a licensed financial adviser can help you decide.