We’re sure you’ve heard of financial firms which are in the commercial of Asset Management, but would like to know very well what the fuss is all about. Why do you really need asset management? What do these firms offer that you can’t help yourself with? For starters, many of them are established, credible firms which means that business and often work wonders with money. Their trick? The experts and knowledge bank at their disposal.
Asset management refers to the management of a client’s financial investments. Usually, asset management firms pool the collective funds of several ราคาหน่วยลงทุน investors and put them on the behalf in different types of instruments. These firms are also called mutual fund companies, and they issue “units” of these mutual fund schemes with their investors. All asset management firms put a premium on risk management and maximization of returns and deploy different investment strategies with regards to the ultimate goal of the client. Different strategies result in numerous investment schemes, the most popular which are listed here.
Fixed income: These investments are meant 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 for example 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 in addition support the promise of better returns. Equity schemes might be industry specific, wherein the majority of the investment is in companies of a certain industry; might 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 very best firms and gauge the risks and volatility with the objective of giving the investors perfect returns.
Balanced: Such funds tend to invest in a mixture of assets such as for example preferred shares, bonds and common stock with the intention of providing stability in income along with growth. In this strategy, investments in every asset class tend to be within set limits. Balanced funds tend to be more suitable for investors with long time 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 temporary interest rates.
Commodity: Commodity funds purchase units linked to different commodities – such as for example gold and other precious metals, or fuel.
Fund of funds: Such funds purchase other mutual funds, thereby mitigating investment risk further.
They’re just a number of the most popular instruments made available from asset management companies. The portfolios offered and strategies employed vary from firm to firm. Duncan Hughes has written a book called “Asset management theoretically and practice” offered at, a good resource for those of you wondering more.
The diversity of investment outlets, risk and returns made available from asset management firms often sees people multiply their fortunes. So, find your perfect investment scheme and maybe you can count your chickens ahead of when they hatch!