Investment Management Companies – Why Einvestment?
Finding the best investment opportunities on global markets is a day-to-day job. People prefer to pay investment management companies to do it for them. Here’s a quick look at how investment management firms operate and how to supercharge your investment portfolio with cost-efficient and tax-efficient investments.
Investment management is the creation and overall care of an investment portfolio. Investment management often includes suggesting an investment strategy, buying and selling investments and managing the portfolio of the client. Investment management can be done on your own or with an advisor’s help, according to NerdWallet.
What is investment management company?
Investment management company is a type of investment company that manages clients’ assets. Generally, investment management firms are pooling the funds from institutional and individual investors into securities, funds, bonds, digital assets and other asset classes that match the investment objectives and asset allocation strategy of particular investment product offered by the company. Investment management companies are aimed to create diversified and income-producing investment portfolio for it’s clients, open up hidden investment opportunities and bring investors to their financial goals with reduced risks. Investment management firms enable investors to build balanced, convervative, speculative and aggressive investment portfolio with no hassle. They typically focus on wealthy individual investors, companies, trusts, charities or world-recognized corporations.
Types of investment management companies by location
There are two types of investment management companies:
- Onshore investment management companies are generally located in Europe, United States, Canada, United Kingdom and other onshore jurisdictions with comparably high taxes. However, major brands of the industry are mostly based in onshore jurisdiction despite having an offshore divisions for the clients who are looking to invest overseas.
- Offshore investment management firms are domiciled in a tax-efficient jurisdiction, as well as offshore investment funds. You should consider investing in offshore investment products if you seek to invest internationally, enhance your returns and get unlimited access to global markets, including developing countries with potentially more attractive investment opportunities. Secondly, investing offshore may reduce the risks as well because of broadly diversified allocation to different sectors, countries, currencies and asset classes.
How do investment management firms manage the funds?
Basically, investors may allocate their savings to mutual funds directly with selected investment management company. The company is principally responsible for driving the mutual fund and making decisions that benefit the investors. The company invests the funds in line with the investment objectives of the Fund or Portfolio.
Every investment product has a particular investment objective, which helps the portfolio managers choose the right mix of assets to invest. For example, most debt-oriented funds have a sizeable proportion of their assets under management in bonds and other fixed-income assets. For example, actively managed funds can deliver significantly higher returns, but it’s more risky investment, so you should accept taking more risk to feel comfortable with volatility. Meanwhile, most of balanced mutual funds invest in a mix of shares and fixed income products. If you are planning to invest without taking too much risks, you may also consider investing in Passive Funds or Index Funds.
In-Depth Research & Analysis
Building the broadly diversified investment portfolio requires a lot of in-depth research and professional analysis of historical data of each asset. Experts study the market, micro and macro-economic aspects, and the forward the reports to portfolio management team or Fund manager who then makes investment decisions in line with the Fund’s objectives and investor’s risk profile.
Investment management firms typically have a professional team of researchers and analysts who report the researched investment opportunities with a strong potential to growth, and ongoing trends to portfolio managers. Portfolio management team then chooses the securities or other asset classes to buy or sell. This is how a company builds a portfolio, which mostly depends on the experience and expertise of portfolio managers. For example, retirement portfolio allocation requires different approach and different strategie. The older you are, the smaller share of your assets should be allocated to high-risk investment products.
Investment management companies have to provide the clients with up-to-date information that has a direct impact on their mutual fund holdings. It also has to send investors regular updates on sales and repurchases, Net Asset Value, asset allocation details, income distributions, historical data and other relevant information. In simple terms, investment management firms has to look after the interests of their clients.
How to choose the best investment management companies?
You must carefully review the historical data, or simply a track record of the investment management firms that suit your goals and risk profile. Additionally, it’s recommended to take a closer look at AUM (Assets Under Management) value before choosing an investment management firm. It helps if you choose a company or a mutual fund with large assets under management that can easily handle the redemption pressure of High-Net-Worth investors.
The following points play important role:
Reputable investment management companies usually have at least 5 years of strong track record, so it takes years to earn the reputation, and it wouldn’t be a low-risk investment if you decide to invest with a young company that has been operating on the market for less than one year regardless it’s performance over the short-term.
Evaluate reputation using public sources including review websites and professional investors’ community websites. Talk to other investors before taking decision. Actually, there is a more convenient way to reduce the risk and simplify this process by contacting professional financial advisor or wealth manager to find you the right investment opportunities.
Check the investment style of particular investment product offered by investment and wealth management companies. Make sure it fully matches profile. It would be great to choose the products that offer inflation-beating returns if you are looking for retirement investments.
Make sure that the investment management company has the financial license of local regulator of the country where it’s domiciled. Secondly, this is important to avoid investing in fraudulent schemes and do business with legitimate and regulated investment management companies. Thirdly, Licensed and regulated companies and mutual funds is a guarantee of compliance, as regulators evaluate quarterly and annual reports, identities and experience of key persons of the company and other important points that are required to be verified to obtain and handle investment license.
Why consider investing with Einvestment Fund?
If you are looking to invest with trusted investment management company that offers broadly-diversified investment products with time-proven performance history, you should consider investing with Einvestment Fund. The Fund offers investors two Segregated Investment Portfolios for asset allocation. Each investment product is built to match different risk profile of investor.
10 Key Benefits of investing with Einvestment:
- The Fund delivers superior returns since 2018. Please compare investment products to find the most suitable option.
- Monthly Income Distributions. Income is distributed to investors on monthly basis. Activate the additional source of monthly income.
- Tax-efficient investing. Domiciled in the Cayman Islands, which is one of the best offshore jurisdictions for tax-efficient investments.
- Low investment minimums. Start investing with just 1,000 Euros.
- Paperless access. Invest without traditional paperwork. Verify your account automatically, sign agreements with electronic signature.
- High performance. The Fund’s products is a finding for those who look for investments with attractive risk/return potential.
- Low fees. There are no entry or subscription fees, no management fees, no annual fees. Invest cost-efficiently!
- High liquidity. Access your capital anytime, cancel your agreement effortlessly in case or urgent need of funds with just 2.99% redemption fee.
- Offshore exposure. Invest offshore to maximize your returns and reduce the costs.
- Access to global markets. Allocate your savings to the most cutting-edge companies across the world.
Learn more about top investment product of the Fund.