We’re sure you have been aware of financial firms which are in the commercial 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 can’t help yourself with? For one, 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 several types of instruments. These firms are also called mutual fund companies, and they issue “units” of their 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, typically the most popular of which are listed here.
Fixed income: These investments are meant to generate a typical 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: While the name suggests, equity schemes are those where in fact the funds are primarily committed to the stock market. These carry an increased risk than fixed income schemes, but also contain the promise of better returns. Equity schemes might be industry specific, wherein the majority of the investment is in companies of a particular industry; might be on a certain geographies, like an Asia Pacific fund; or diversified. Experts conduct in-depth research to explore the potential of numerous stock markets, profile the most truly effective firms and measure the risks and volatility with the goal of giving the investors the best possible returns.
Balanced: Such funds tend to purchase 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 are generally within set limits. Balanced funds are far more suited to investors with long time horizons and an increased 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 short term interest rates.
Commodity: Commodity funds invest in units associated with different commodities – such as for instance 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 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” available at, a helpful resource for those wanting to know 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 can count your chickens ahead of when they hatch!