Monday, February 25, 2008

Choosing Investment Fund Manager

Choosing Investment Fund Manager
Real estate investment managers have become quite popular in the last years, specially with the real estate bubble. These companies have become the new investment fad in the
market. They aren't the only source of investment, though. There are other choices, like the stock market. But the important thing is that you feel comfortable with the investment fund manager of your choice.

So, which is going to be? Securities or asset investment managers? The US market provides hundreds of investment management companies, and all of them will tell you that they are the best ones. Of course, that can't be true, so it is you, the potential client, the one who has to take that decision. And, in order to do that, you need a bit of additional information.
What Is An Investment Manager?
An investment manager is an organization who is specialized in placing money in determined values in order to accomplish a pre-accorded goal. For example, a bond manager will look for bonds, domestic or international, that can provide the best return over investment to their clients. The goal can be a minimum of 5% in a period of 5 years.

There are two types of investment managers. The f irst one are institutions, such as insurance companies, pension funds or corporations, among others. Remember that all of these organizations have huge amounts of money that need to be invested in something until it is required.

For example, let's say that you are the investment manager of Google. You company has, right now, $1 billion of capital, deposited in a bank. Are you going to leave it there, accumulating low interests, or are you going to invest a part of it in a more profitable, 12 month bond? The trick is to make an adequate balance on the future needs of the company and the best destiny that you can give to the money.

The second type of investment managers are private investors, companies that look for people who don't know how to invest in the market, and require an intermediary that can do the work for them. All for a fee, of course. In this scenario, the individual tells the company for how long they wish to invest their money and the company will determine the best choices.

For example, they may mix a low risk security like US Treasury bonds with shares in a new gold mine in Ecuador. These kind of companies are also known as fund managers, investment advisors or real estate investment managers.

The investment manager services industry moves, in the whole world, trillions of dollars per year. This is due to the fact that every company is a fund manager in it's own way. The good thing about this is that it provides dynamism to the economy of the whole planet, benefiting millions of people in hundreds of countries.

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