We are sure you’ve heard about financial firms that are in the commercial of Asset Management, but want to understand what the fuss is all about. Why do you need asset management? What do these firms offer that you can’t help yourself with? For one, many 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 describes 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 several types of instruments. These firms are also called mutual fund companies, and they issue “units” of these mutual fund schemes to their investors. All asset management firms put reasonably limited on risk management and maximization of returns and deploy different investment strategies depending on the ultimate goal of the client. Different strategies result in various investment schemes, typically the most popular of 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 invested in safe instruments such as government bonds.
Equity: Since the name suggests, equity schemes are those where the funds are primarily invested in the stock market. These carry a higher risk than fixed income schemes, but in addition contain the promise of better returns. Equity schemes could be industry specific, wherein the majority of the investment is in companies of a particular industry; could be on a certain geographies, as an example an Asia Pacific fund; or diversified. Experts conduct in-depth research to explore the potential of various stock markets, profile the utmost effective firms and assess the risks and volatility with the goal of giving the investors perfect returns.
Balanced: Such funds tend to invest in a mixture of assets such as preferred shares, bonds and common stock with the intention of providing stability in income along with growth. In this strategy, investments in most asset class are generally within set limits. Balanced funds tend to be more suitable for investors with long time horizons and a higher risk tolerance.
Money market: Money market funds invest in 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 invest in units associated with different commodities – such as gold and other precious metals, or fuel.
Fund of funds: Such funds invest in other mutual funds, thereby mitigating investment risk further.
They are just a few of typically 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 the theory is that and practice” offered by, a useful resource for people 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 prior to they hatch!