We are sure you’ve been aware of financial firms which can be in the business of Asset Management, but want to know what the fuss is all about. Why do you need asset management? What do these firms offer that you cannot help yourself with? For 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 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 various kinds of instruments. These firms are also called mutual fund companies, and they issue “units” of the 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 depending on the ultimate goal of the client. Different strategies result in different investment schemes, 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 for instance government bonds.
Equity: While the name suggests, equity schemes are those where in fact 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 a lot of the investment is in companies of a particular industry; could be restricted to certain geographies, for instance an Asia Pacific fund; or diversified. Experts conduct in-depth research to explore the potential of numerous stock markets, profile the top firms and gauge the risks and volatility with the aim of giving the investors perfect returns.
Balanced: Such funds tend to invest in a mixture of assets such as for instance 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 ideal for investors with long time horizons and a higher 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 instance gold and other precious metals, or fuel.
Fund of funds: Such funds purchase other mutual funds, thereby mitigating investment risk further.
They’re just some of the most popular instruments provided by asset management companies. The portfolios offered and strategies employed vary from firm to firm. Duncan Hughes has written a guide called “Asset management the theory is that and practice” offered at, a helpful resource for those of you wanting to know more.
The diversity of investment outlets, risk and returns provided by 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!