Professional management
By investing in a fund, you delegate the management of your assets to investment professionals. Funds are much more than just a way of -unknown-packaging-unknown- a random collection of individual securities. Fund managers constantly monitor and manage their portfolios in line with the investors-unknown- interests.
Fund managers invest in line with clearly defined guidelines.
Anyone who invests money in financial instruments expects an appropriate return. The same is true of fund investments. As instruments for capital investment and long-term wealth creation, the purpose -unknown- or investment objective -unknown- of funds is to earn money on the financial markets and thus add value on the assets invested. This growth in value stems on the one hand from the appreciation in the value of investments held, and on the other from income such as bond or money market interest and/or dividends. Even by investing modest amounts, investors participate in the opportunities on the international equity, interest rate, currency, money and real estate markets.
Fund managers act exclusively in the investors-unknown- interests.
The investment and management of a fund-unknown-s assets is entrusted to a fund manager. The individual investors in a fund have no say in shaping its investment policy and the investment decisions. However, fund managers do not act purely at their own discretion. They are bound by strict investment guidelines as set down in the fund-unknown-s documents, and they invest in line with the clearly defined investment policy of the fund. The manager buys and sells the individual positions in the fund-unknown-s portfolio and adjusts the weightings of the individual securities as market circumstances require. As major players, fund managers act exclusively in the interests of their investors. They provide direct access to the financial markets and secure favorable trading conditions by dint of their relatively large transactions. In some cases, funds are the only way that private individuals can invest at all, for instance as regards investments in the Far East, on the international money markets, or investments that require extensive specialist knowledge and/or are only open to a restricted group of investors.
Fund managers are professionals who deal with investments continually.
Fund managers ease the burden on retail investors in a number of regards. They are professionals who deal with investments continually. From the perspective of retail investors, it is important not to underestimate the heavy demands this entails in terms of amassing information and further training in an environment shaped by a plethora of markets and currencies, complex modern investment instruments and in some cases hefty price fluctuations on the financial markets.
