The main role of an investment manager is administration of assets that have an income-earning potential, including capital investments and trust units. An investment manager seeks to acquire an asset that will have a high future value, sell it off to make a profit. As part of their professions, investment managers are always on the lookout to acquire additional investment assets.
The above discussion is just but a general description of the role of an investment manager. Below, we tell you why it is important for you (as an investor) to consider hiring services for an investment manager to look over your assets. Winthrop Partners feel that this approach is the best way to offer wealth management services. They are well aware that every client situation is different, and that each client deserves our full attention and expertise.
Availability of Professional Analysis
You are a lucky investor if you possess a good understanding of study aspects in the investment and asset management world. However, contacting an investment manager is probably the most prudent decision for anyone who is unfamiliar about investments, or committed to other important tasks.
For landscaping entrepreneur Patty Leglise, getting a professional second opinion is critical, especially when money is involved. “I’m no investment expert, and it’s such an easy area to lose lots of money if you’re not educated around the subject. Having an investment manager involved can take away all of those fears, and allow you to make wise investments and reduce the risks involved.”
An investment manager will guide you to make the most rational financial decisions after an analytical study of a raft of investment factors. With the help of such a professional, you can have peace of mind with the assurance your assets are under expert management, supported by many years of experience and cutting-edge financial market intelligence.
Helps Identify Hidden Risks in Your Investment Plan
The identification and curing of risks is an integral part and step in the careful management of any investment plan. Investment managers rely on past experience and professional knowledge to identify and keep track of all risk factors likely to affect profitability and investment returns.
Lower risk exposure provides added flexibility to an investment/business plan, greater strategies and options for decision making processes. Upon completing a risk identification measure, the investment manager may alter strategies to either circumvent specific risks, or minimize their impact if they cannot be avoided altogether.
Have A More Secure And Stronger Foundation
Unfortunately, for investors who are new to investment planning or hold a different professional background, the likelihood of adopting a too timid or aggressive investment plan is high, due to lack of knowledge on risk factors in their investment plans. This means the chances of success or failure lie on the extremes when a beginner without necessary knowledge undertakes investment ventures.
For telecommunications mogul Neil Royle, knowing the risks that are involved with investing is vital. “Money is something you work hard for, and if you are wasting it on investments that you don’t have full knowledge about, then it’s utterly useless. If you’re not willing to learn the risks involved, make sure you talk to an investment manager as their sole job is focusing on the risks associated with investing.
By hiring a professional investment manager, the investor can rest easy and allow their asset holdings to be managed by the expert, who knows the precise extent of the investment’s risk profile.
Automation Benefits
The growth and adoption of technology has affected how operations are carried out in all economic sectors including financial investments. Technology has pushed people’s expectations higher to want greater work output with minimal input of time and effort.
In investment management, several processes have been automated such as transfer, authentication and reconciliation of investment data for prompt and accurate reporting.
Possibility Of Outperforming The Market
While working on your own, you are likely to adopt a conservative approach for your investment strategy resulting in an average rate of return. In some instances, an aggressive investment plan may yield a good return to a novice investor but the probability of losing is the same, if not greater.
Australian hydro expert Matt Parker outlines just how dangerous the aggressive investments can be, but also explains that you’ll reap the rewards. “Growing up, you often would hear the phrase ‘go big or go home’. When it comes to investments, going big is something that is infinitely more precarious as opposed to playing the small investments. Investment managers are more aware of the signs needed to make a somewhat safer investment for a bigger risk, and that’s why they can be a vital part of the business.”
Investment managers provide a good chance of overtaking the markets, yielding an annual return on investment higher than the typical 7% to 10% ROI. A higher rate of return can only be attained by taking in more calculated risk, which is what investment managers are good at.
