We are sure you have heard about financial firms which can be in the business of Asset Management, but would like to understand what the fuss is all about. Why do you want 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 place them on their behalf in different types of instruments. These firms are also referred to as mutual fund companies, and they issue “units” of the mutual fund schemes with their investors. All asset management firms put reduced 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 different investment schemes, typically the most popular of which are listed here.
Fixed income: These investments are supposed to generate a regular stream of income and bring stability to the portfolio. Generally, the funds underlying a fixed income scheme are committed to safe instruments such as for instance government bonds.
Equity: Because the name suggests, equity schemes are those where in actuality the funds are primarily committed to the stock market. These carry a greater risk than fixed income schemes, but in addition contain the promise of better returns. Equity schemes could be industry specific, wherein most of the investment is in companies of a certain industry; could be limited to 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 top firms and gauge the risks and volatility with the goal of giving the investors the best possible 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 in addition to growth. In this strategy, investments in most asset class tend to be within set limits. Balanced funds are more suited to investors with number of years horizons and a greater 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 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 are just a number of typically 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 theoretically and practice” offered by, 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 ahead of when they hatch!