We’re sure you have heard about financial firms that are in the business of Asset Management, but wish 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 just 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 various kinds of instruments. These firms are also called mutual fund companies, and they issue “units” of these mutual fund schemes for 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 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 invested in safe instruments such as government bonds.
Equity: Whilst the name suggests, equity schemes are those where in fact the funds are primarily invested in the stock market. These carry an increased risk than fixed income schemes, but in addition support the promise of better returns. Equity schemes could be industry specific, wherein a lot 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 varied stock markets, profile the most effective firms and measure the risks and volatility with the objective of giving the investors perfect returns.
Balanced: Such funds tend to purchase a variety of assets such as preferred shares, bonds and common stock with the intention of providing stability in income in addition to growth. In this strategy, investments in every asset class tend to be within set limits. Balanced funds are far more suitable for investors with number of years 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 linked to different commodities – such as 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 few of the most used instruments provided 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” available at, a good resource for those of you curious about more.
The diversity of investment outlets, risk and returns provided 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!