Finding Managed Investments

Managed Investments

Often times you will hear that the best way to select any managed investments is to look at the investment managers\’ performance track record. Investment experts would disagree. In fact, they say that it may be the worst way to judge the effectiveness of a manager because it doesn’t consider many other factors that can influence their performance in the future. Experts recommend that investors incorporate several other factors when evaluating their managed investments.

Investment Decision Procedures

All fund managers use a self-styled process for identifying and selecting securities for their managed investments portfolio. This can be a measure of their capacity to produce consistent results.

Here’s what to look for when evaluating the process of your managed investments:

It is important to see if they have an established, articulated process by which they make investment choices.

You need to know that they use state-of-the-art technology in compiling their research and monitoring markets.

Most managers utilize a team of investment pros. Look to see if the team has much turnover in its members and what criteria is used to select members of the team.

A sound process employs fundamental risk management principals in order to produce reliable results. Check to see if they abide by such principals in their managed investments philosophy.

This should help you narrow the field of fund managers who have the capacity to outperform the others.

Diversify With Multiple Fund Managers

After narrowing your field, consider choosing several the managers in order to achieve optimum diversification in your overall portfolio. In doing so, you will be blending investment styles, objectives and risk levels which can provide more stability in your overall portfolio. It would be important to combine conservative styles with more aggressive styles so your managed investments portfolio is not exposed to any one level of risk.

Keep An Eye On Your Fund Managers And Your Managed Investments

Few people have the time, inclination or the capacity to track fund managers on a daily basis, and there is probably little reason to do so. Their overall performance should be measure based on more than daily price changes. The more important factors to gauge are any changes in their process, team members, investment objectives or philosophy that will influence future performance. Fortunately there are some independent ratings firms that track these factors for you. For a fee, you can follow the research and monitoring provided by companies such as Standard and Poor’s and Morningstar. They will alert you to any changes in their ratings of the funds and provide you with the analysis that goes into their rating changes.

Financial professionals can be of some assistance in evaluating and monitoring fund managers and their managed investments. However, some caution should be exercised in selecting a financial adviser with whom to work. Most advisers are compensated on the sale of products offered through their companies so their motivations may be more aligned with their pocketbook versus what may be in your best interest. While this is not true of all commission-based advisers, it may be worthwhile to seek the guidance of a fee-based adviser who is compensated directly by you for the planning advice they give you.

Managed Investments Requires You To Do Your Homework First

Your best bet is to do your homework and clearly establish your goals and priorities. Utilize the resources that are available to you to study up on fund managers and their offerings. Nobody knows you better than you, and certainly, nobody will be more diligent about making the right financial decisions for you. So take care and precautions before selecting your next investment manager to look after your managed investments.

Contributing author Mark Aucamp has been providing Money Saving Tips with regular Managed Investments and comments. Mark has extensive experience in providing Debt Management, Mortgage Advice and finance solutions. He is recognised as an authority in the field of debt management and mortgage advice. http://moneysavingtips.net

Contributing author Mark Aucamp has been providing Money Saving Tips with regular Money Saving information and help. Mark has experience in providing Debt help, Mortgage Advice and money solutions. http://moneysavingtips.net

Author Bio: Contributing author Mark Aucamp has been providing Money Saving Tips with regular Managed Investments and comments. Mark has extensive experience in providing Debt Management, Mortgage Advice and finance solutions. He is recognised as an authority in the field of debt management and mortgage advice. http://moneysavingtips.net

Category: Advice
Keywords: managed investments, investment managers, investments