Investment Management: Why & How to do Investment Management?
Investment Management is very essential for anyone. Unfortunately people don't understand the importance of Investment Management. Most of the people think that, once they make Investment, their job is over. Most of the people divert their fund to some reputed mutual funds and than never look at it. But well, your fund manager won't tell you that when to exit? It is something that you have to decide.
What is Investment Management? Why to do Investment Management?
First of all you have to understand that what is Investment Management? Well, Investment management means managing your Investment. It means balancing and re-balancing your money between various Investments (Asset Classes). Say for Example, You have total Investment of Rs. 1 Crore in Equity, Bonds, Gold, Real Estate, Mutual Funds, Art & Web Properties than you have to manage these Investments according to market conditions.
Because in different market conditions, various Investments will perform differently. So Investment Management will help you maximize the return on your Investments & reduce the risk.
How to do Investment Management?
Well there are so many ways to do Investment Management. Every way has its own advantages and disadvantages. Here are few.
- The Simple & Easiest way to do Management of your Investments is Higher a Professional Investment Manager. He will do the rest of the things for you. You simply have to monitor your Investment Manager.
Of course, these type of Professional Investment Management Services are not FREE. They come with charges. You have to pay them a FEE irrespective of the market will perform good or bad.
- Another way to do this is, Divert your money in those Mutual Funds which Invests in Gold, Equity & Bonds according to market conditions. There are many Mutual fund houses which offers this type of funds.
- Buy Investment Management Software. Ofcourse it will cost you but it will make your task eas.
- If you can't afford a personal Investment manager than you can give your Funds to Investment Management Firms. These firms pool the large amount of money from small investors and manage it on their behalf. So it will be a little bit cheaper than highering a professional Investment Manager.
- Do it yourself - Another way to do this is be your own Investment Manager. But it will require a higher level of Financial Literacy. But it's Worth it. Warren Buffest manages his Investments by himself. He spends 60 hours a week behind doing a research & mindwork for managing his Investments.
So these are the few ways to keep in mind about Investment Management. Remember, The well managed Investments will give you highest returns in the long run. So don't be lazy. Be active and think about managing your Investments......!!!!
Sunday, May 3, 2009
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