Many people would like to invest some of their money in order to receive a financial return such as stock dividend or growth on their investment. However, the average person does not understand the intricacies of investing, so they turn to a professional to help them make the right investments.
A good investment manager will not only know the forecasts, strategies, hot tips and trading ideas, he or she will also have a sound philosophy about money management.
Along with peace of mind, some of the services you will get from an investment manager are:
- Higher returns
- Less volatility
- Income and growth from your investment
- Objective, unbiased investment advice
Even though there is no guarantee that an investment manager can increase your profit, there are several things they can do that will make a difference.
- Professional managers will give your investment full-time attention. They watch it regularly and take advantage of contacts, access to investment opportunities and their considerable experience.
- Professional managers will have strategies that are not available to the common investor. They can broaden your investment beyond what you would have been able to do on your own.
- Professional managers have variable fees depending on the type and size of investment portfolio. It’s not one-size-fits-all.
- Professional managers are accountable for your money.
Successful investment managers will consider your entire financial situation and customize an investment strategy that is specific for you.
While they monitor the results of your investments, they will make adjustments based on their knowledge and experience. They’ll not only get returns on your investments, but they will help you reach your financial goals.
How a Manager Gets Better Results
Investment managers are often able to get above-average results. The main reasons for this are:
- Their philosophy of investing – this may include market timing, external research and what type of shares they buy.
- How they implement their philosophy – this may include what assets they research before investing, how they decide what to buy and sell and whether decisions are made by an individual or committee.
- The investment group – if a group of investment managers have achieved stellar returns, you need to make sure your investments are managed by that same group. Teams break up and reform, but some have been working together for years. If the team is new, the performance record of the investment management company may not relate to the existing team.
Investment management includes a wide variety of investment strategies such as multi-asset investing, mutual funds and multi-manager investing. A successful investment manager will be able to make the right decisions more often than not, which will improve your odds of getting a good return on your investments.