We are sure you have heard of financial firms which can be in the commercial of Asset Management, but want to know 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, most 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 place them on the behalf in different types of instruments. These firms are also called mutual fund companies, and they issue “units” of these mutual fund schemes to their investors. All asset management firms put reasonably limited 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, the most used that 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 dedicated to safe instruments such as government bonds.
Equity: While the name suggests, equity schemes are those where the funds are primarily dedicated to the stock market. These carry a higher risk than fixed income schemes, but additionally contain the promise of better returns. Equity schemes could be industry specific, wherein all 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 numerous stock markets, profile the top firms and assess the risks and volatility with the aim of giving the investors the perfect returns.
Balanced: Such funds tend to invest in a mix of assets such as 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 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 short term interest rates.
Commodity: Commodity funds purchase units connected to different commodities – such as gold and other precious metals, or fuel.
Fund of funds: Such funds purchase other mutual funds, thereby mitigating investment risk further.
These are just some of the most used instruments made available from asset management companies. The portfolios offered and strategies employed vary from firm to firm. Duncan Hughes has written a guide called “Asset management in theory and practice” offered by, a useful resource for people curious about more.
The diversity of investment outlets, risk and returns made available from 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!