While starting on your investment journey, one of the most critical questions you need to ask yourself is, "Should I go it alone? Or do I need help acquiring and managing my assets?". Although it may cost you, the fees will undoubtedly be worth it for you to get help managing your properties. So what is an investment manager, and what do they do? Why don't we find out.
WHAT DOES AN INVESTMENT MANAGER DO?
An investment manager is an expert who specialises in helping his/her client build up their investment portfolio. This manager will consider your objectives, goals, and time frame before diving into the market to allow you to acquire properties that fit your requirements. The three major tasks that an investment manager help you with are;
• Provide you with potential investments: Your investment manager is privy to many deals and opportunities that pass most people by every day. They will provide you access to these deals while helping to measure and calculate the risk attached.
• Assessing your financial goals: They consider the vital information about you, which will help guide your investments. These factors include; how much you're willing to invest, your expected returns, your risk threshold, and when you may require access to your investment funds.
• Devising investment strategies: Investment managers are expert strategists who can help you design an investment strategy tailor-made for your specific needs. They will also help you manage your risk as you continue to diversify your portfolio.
6 REASONS WHY YOU SHOULD HIRE AN INVESTMENT MANAGER
1. A symbiotic relationship
In previous decades, these investment managers were compensated based on commission; this meant they made money regardless if you profit from your investment or not. Due to recent changes in the law, they get paid a yearly fee from a percentage of their assets; this now means that the more money you make, the more they do.
2. Investment managers can help put deals together
Most investment managing companies manage the asset portfolio of more than one client, which means they can access a vast amount of funds. In those cases where the minimum required investment for a deal is way too large for the average investor, a good investment manager will be able to pool other people's capital to foot the bill and bring them into the deal.
3. They have a competent team
To be a successful investment manager, it is required that they have an efficient team working together with them, and this is the case most times. This team is usually packed with licensed professionals who share ideas, theories, and the latest news between themselves, providing you access to a golden pool of knowledge that significantly surpasses what you paid for.
4. They usually have access to private offerings
An investment management firm is regularly privy to firsthand information about potential deals which could rake in massive returns. These private offerings are given to their favorite clients who are sure to possess the financial capability to handle the costs and bear the risk. However, deals like this are usually on the risky side of things, so due diligence will be made before making such commitments.
5. You can learn alot while working with an investment manager
Investment managers get their reputation not just from how many profitable deals they make for their clients but also the state they leave them in. Good professionals are always willing to show you the ropes and share vital information with you which you can use in later years when you don't require their help anymore.
6. They love the game too
Investment managers are born of the desire to learn all that he/she can about the business and investment world. Investment managers don't go to school to learn economics and accounting, they live and breathe investment all day. This is why although you may be intelligent and knowledgeable in the trade, you may well be better off letting them handle your portfolio.
As an investor, your portfolio is your CV, it serves as your credentials because that is what investors are judged with. This is why employing the services of a portfolio manager is important as they can help take over your investments entirely or assist your decision-making.
As they say, two heads are better than one, what better head will you like helping you than one which is knowledgeable and highly dedicated to the craft?