Equity or share funds are designed for medium and long-term investors seeking capital growth and a tax effective income.
The big advantage of investing through a managed fund is that you can gain exposure to a wide range of shares with only a small amount of money. Dividend imputation applies to shares that have already been taxed in Australia. Dividends paid out are called franked dividends and investors receive a tax rebate on them, making this kind of investment extremely tax efficient.
Professional managers take care of the administration of your portfolio and tax reporting, tasks you personally would have to perform if making direct investments.