What is investment management?
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Many people get confused when they hear the word investment management and relate it to the wealthy only; however, no matter how much money you have it's crucial to make the most out of each pound!
And having or hiring someone to take care of and manage your investment portfolio is not a luxury service as many people may think; it's in fact one of the most important solutions for your business goals.
Thus, if you're a novice or an experienced investor, investment management provides you with the resources and information you need to build a profitable portfolio and maximize your financial profile.
What is investment management?
Investment management includes more than just buying and selling financial assets and other investments. Creating a short-or long-term strategy for the acquisition and sale of portfolio holdings is a component of management. It may also cover banking, budgeting, and tax-related services and obligations.
The phrase most frequently refers to managing the holdings within a portfolio of investments and trading them to accomplish a particular investment goal. Money management, portfolio management, and wealth management are additional terms for investment management.
How does investment management work?
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Your savings goals (retirement, education, major purchase) and time frame are the first considerations when making an investment decision.
Additionally, you will be asked questions to aid the investment manager in determining your risk appetite, or your capacity for bearing swings in investment returns and stock market fluctuations. The manager's investing strategy is also influenced by current market conditions, past performance, tax efficiency, and investment fees.
Understanding how investment management works is crucial. When it comes to investing and money management, this can be extremely helpful in guiding your decisions.
Also read: 5 investment opportunities in Egypt in 2023
Set your investment objectives
It's essential that you decide on your individual investment goals and objectives before you invest. You should think about factors like the amount of risk you are willing to take, the kind of returns you would be satisfied with, the length of time you plan to invest, and any moral considerations that might influence your choices.
Create a plan
Select the strategy that works best for you after determining your investment goals. Depending on how much time and effort you want to invest in the process, you can choose between active or passive management options.
While passive investors invest in index funds, focusing solely on the movements of traditional market indices, active managers choose individual stocks based on their research to outperform market returns.
Find and select your area of investment
You must conduct research on the best investments for your portfolio after choosing your strategy. This entails researching specific stocks or other securities to find potential investment opportunities if you're an active investor.
When making your choice, you should take into account elements like a company's financial situation, market trends, and competition. To maximize future returns for passive investors who favor index funds, it is critical to choose investments that are in line with your objectives.
Keep on learning and tracking your portfolio
Being informed on the market trends and staying up-to-date on the industry is super important. This entails keeping up with market news, following any changes to tax laws, and comprehending how broader economic trends might impact your investments.
Keeping yourself informed will help you decide when to buy and sell assets to get the best returns.
Additionally, It's crucial to keep a close eye on your investments after you've made your selections. And this means remaining informed about the markets and staying current with any news that could affect the value of those markets.
How to manage your investments?
There are two solutions for managing your investments either you do it on your own or outsource an investment management company!
If you choose to outsource an investment company, get to know its benefits:
Lower costs
Some people may think that outsourcing an investment management company is more expensive than managing your own. This impression may be influenced by the upfront costs. However, the data demonstrates that outsourcing is less expensive over time.
One alternative strategy for accelerating your company's growth is outsourcing: To act as an extension of your company, you hire your outsourcer rather than hiring people to provide support.
You gain from economies of scale because your outsourcer specializes in providing investment management services to its various clients. Therefore, you won't have to pay for administration and training costs while still receiving the same benefit from hiring more staff.
Focusing on your business
You may be able to broaden your service offering through outsourced investment management, depending on the nature of your practice and your outsourcing provider. High-net-worth clients in particular frequently need portfolio solutions tailored to their particular requirements.
Applying that level of concentration to a single client as an independent advisor might not be possible. However, a third party with expertise in investment management will have the required resources on hand.
Mitigating risk
A third-party administrator offers an additional set of eyes, processes, and regulatory compliance, providing additional safeguards to mitigate and reduce risk.
With that being said, How can Tayf help?
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We’re an investment management company that operates in three modules: commercial real estate, franchise investment, and concept development.
We introduce a fresh perspective to the investment management industry that is not present in the Egyptian market!
We’re not only changing and redefining what "Investment Management" is, but we also bring with us market expertise gained over a 25-year period as well as insights from various geographical regions. Our goal is to develop investments that add value for all of our clients over their entire lives.
We operate in three main modules, commercial real estate, franchise investment, and concept development. Our process goes as follows: We handle the complete process from research to marketing and operation of real estate. We invest in franchises and help you hunt new franchise opportunities that are needed and profitable in any market. We identify new market challenges and use our human-centered approach to develop new concepts.
Contact us and let us help you!
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