We are sure you’ve heard of financial firms which can be in the commercial of Asset Management, but want to know very well 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, most 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 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 their behalf in various kinds of instruments. These firms are also known as 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 depending on the ultimate goal of the client. Different strategies result in different investment schemes, the most used that are listed here.
Fixed income: These investments are designed 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: As 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 also 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 restricted to certain geographies, like an Asia Pacific fund; or diversified. Experts conduct in-depth research to explore the potential of varied stock markets, profile the most truly effective firms and gauge the risks and volatility with the goal of giving the investors the best possible returns.
Balanced: Such funds tend to buy a variety of assets such as for instance preferred shares, bonds and common stock with the intention of providing stability in income as well as growth. In this strategy, investments in most asset class are generally within set limits. Balanced funds are more ideal for investors with long time horizons and a greater 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 connected to 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’re just a number of the most used 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 people curious about 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 prior to they hatch!