3 Fascinating Reasons Why You Need A Funds Manager
What do you think of when funds management comes to mind? A guy in a blue striped jacket yelling orders across a busy office room? Thankfully, that’s just the plot of wall street movies, funds management is pretty different.
Funds management is the overseeing and handling of a financial institution’s cash flow. The fund’s manager ensures that the maturity schedule of the deposits coincides with the demand for loans among other duties
Many times people ask; why do I need a funds manager? Why should I consult a funds manager and not just create my stock portfolio by following stock expert advice on tv? Or do my analysis in the stock market and accordingly pick up the right stocks for myself? Why should I pay a certain percentage of my total assets as a funds management charge each year? Though these are valid questions, but the comparison is not great. Creating your portfolio is likely to have a short-term view but a funds manager will help you create a long term view, manage risk, oversee cashflow completely and make the right decisions on matured deposits for you.
Whether you are the loudest in the room or the quiet one, everyone needs a funds manager.
So there are gains when you involve a funds manager in your financial life, it is not just for a mere show off. Here are three fascinating reasons why you need a funds manager.
1. A Consistent Investment Strategy
A funds manager consistently manages your investments in such a way that reflects the goals and objectives of your funds as an individual, a company or group of companies. Most of the time, a funds manager is supported by several analysts, traders and other people who monitor the market, make trades and perform other duties for their customers on behalf of the fund’s house. This support system is very important as they give all the right inputs to the funds manager to make informed investment decisions. They also come up with workable strategies to sustain their customers’ investments.
2. Funds Managers Protect Investors Money
Another important reason why you need a funds manager is that they protect your money as an investor. As funds managers ourselves, at BlackCOD, we make sure we employ the right risk management technique to protect client’s investments and achieve the optimum diversification of our client’s portfolios.
A funds manager will also benefit you by helping to minimize the market and industrial risk on your portfolio.
A lot of meetings are organized with top companies and executives on behalf of the clients to discuss the safest places to invest, when to invest, attract new investors, keep existing investors informed about their past performances, conclude short and long term plans before making calls accordingly. It is almost impossible for you to do all these yourself, hence another significant role the funds manager can play in your finances.
3. Constant Communication And Professional Advice
As a retail investor, it is only normal to panic in times of global or national economic meltdown, or even in times of new government policies. It is the role of the funds manager to constantly communicate with their retail investors in times like these, especially in major market events such as; general elections and global events like Brexit, to make sure these retail investors, which could be you, do not panic and stay constantly invested in their funds.
“With all these roles and responsibilities of the fund’s managers many are consistently performing above their benchmark in the last twenty years”
-Yadnya Investment Academy
It is very clear from here that an individual cannot perform all these responsibilities and make informed decisions with a long-term view of your portfolio. It is therefore important that you identify the right funds manager for you and accordingly invest in that scheme.
Funds management could be a new ground for you, it is a fascinating space for your funds to thrive. At BlackCOD Asset Management, we do not just offer funds management services, we offer excellent advisory services on funds management to all our new and existing clients.