We’re sure you’ve heard of financial firms that are in the business of Asset Management, but wish to know very well what the fuss is all about. Why do you really need asset management? What do these firms offer that you cannot help yourself with? For just one, a lot of them are established, credible firms that mean business and often work wonders with money. Their trick? The experts and knowledge bank at their disposal.
Asset management identifies the management of a client’s financial investments. Usually, asset management firms pool the collective funds of several ราคาหน่วยลงทุน investors and put them on their behalf in various kinds of instruments. These firms are also called mutual fund companies, and they issue “units” of the mutual fund schemes for their investors. All asset management firms put a premium on risk management and maximization of returns and deploy different investment strategies depending on the ultimate goal of the client. Different strategies result in different investment schemes, the most popular which are listed here.
Fixed income: These investments are designed to generate a regular stream of income and bring stability to the portfolio. Generally, the funds underlying a fixed income scheme are dedicated to safe instruments such as government bonds.
Equity: As the name suggests, equity schemes are those where in fact the funds are primarily dedicated to the stock market. These carry an increased risk than fixed income schemes, but additionally support the promise of better returns. Equity schemes could be industry specific, wherein the majority of the investment is in companies of a specific industry; could be limited to certain geographies, like an Asia Pacific fund; or diversified. Experts conduct in-depth research to explore the potential of various stock markets, profile the most truly effective firms and measure the risks and volatility with the objective of giving the investors the best possible returns.
Balanced: Such funds tend to buy a mixture of assets such as preferred shares, bonds and common stock with the intention of providing stability in income in addition to growth. In this strategy, investments atlanta divorce attorneys asset class tend to be within set limits. Balanced funds are far more suitable for investors with number of years horizons and an increased risk tolerance.
Money market: Money market funds purchase commercial paper, treasury bills and other liquid securities. Interest is credited monthly to investors. Money market funds are safer, but their rates of return are lower, approximating short term interest rates.
Commodity: Commodity funds purchase units connected to different commodities – such as gold and other precious metals, or fuel.
Fund of funds: Such funds purchase other mutual funds, thereby mitigating investment risk further.
These are just a few of the most popular instruments offered by asset management companies. The portfolios offered and strategies employed vary from firm to firm. Duncan Hughes has written a book called “Asset management in theory and practice” offered at, a helpful resource for those wondering more.
The diversity of investment outlets, risk and returns offered by asset management firms often sees people multiply their fortunes. So, find your perfect investment scheme and maybe you are able to count your chickens well before they hatch!