Professional Fund Management: Insights on Making Your Assets Work For You

As a consequence of the global macroeconomic events that are trickling down to several economies, the investment landscape as we have it today is very uncertain. Due to this, investors stand a risk of losing funds as both the stock and crypto markets have been on a down-plunge since the beginning of the year.

While the advent and aftermath of the coronavirus pandemic have left the financial ecosystem in despair, owing to the Central Banks' response that ultimately ushered in massive inflation, the current war in Eastern Europe between Russia and Ukraine has further stumped the recovery of the market has been trying to make in the past year.

Amidst these uncertainties, it is recommended that investors make their assets work for them by committing them to the hands of experts — fund managers (FM) — that can utilize working strategies to help maximize the capital amidst the broad uncertainty in the market.

Fund managers have the necessary experience, expertise, and discipline to manage various kinds of market events, including periods of recession. As such, those who entrust their funds into the hands of FM may stand a better chance of coming out of this broad-based market turmoil stronger than ever.

Fund Management During Periods of Recession

Even though many countries have not declared that they have entered an economic recession, the events playing out have indicated such for many. Engaging in investment activities during periods of recession or unfavorable market conditions requires a particular skill set that only accredited investors can boast of.

Fund Managers have the resources to continually monitor the investment landscape in order to identify inverse trends that can present an entry point for investors. The broad-based strategy employed by key investors is to diversify investments across the board. For instance, the Pure. Fintech group, through the counsel of its expert investors, has invested in a luxury wine sourcing brand, Carta dei Vini (CDV). While the investment seems unusual for this type of company, it is a calculated one, as the wine industry has relatively lower volatility and high demand when compared to other sectors.

Investors should rest assured that FMs are equipped with the knowledge of the market as a whole, and will activate investments based on this knowledge to the benefit of their clients. Besides asset or capital diversification, Fund Managers also tackle periods of economic recession in ways that may not be possible for individual investors.

Defined Benefits of Investing With Fund Managers

There is a set of benefits attached to investing or entrusting one’s funds with an asset manager and these are highlighted below.

• Networking with other professionals. Professional fund managers can get in touch with a group of other professionals in the field where they can share ideas, opportunities, and points of view that can enhance productivity. With these ideas, the fund managers can then exercise their expertise and independence with which they can now make the final decisions regarding the funds they have under management.  

• Access to Advanced Trading Tools. Depending on the defined strategies and goals of the funds, fund managers can invest in a lot of products including CFDs. In a bid to help them get the most out of these kinds of investments, they have access to Artificial Intelligence and machine learning systems that help them get the best from their trading strategies. 

• Value Added Tax Services. Fund Managers operate in a highly professional environment and adhere to local regulations. Concerning these, they always tend to have connections with international tax agencies that help them and their clients meet up with their tax obligations.

• Appropriate Risk Management. Despite their penchant for productivity and success, professional fund managers always respect the risk appetite of their clients. As a result, they invest funds only within the confines of the permissible risks, and in place of the profit they tend to make from charging performance fees, they let time be the definer of their success rates as a whole.

The benefits are innumerable and all these show investors have a lot to benefit from partnering with fund managers.

Keep Pace with the markets

The dynamics in today’s financial and investing landscapes will keep on complicating both the traditional and cryptocurrency markets respectively. While individual investors with the requisite expertise can navigate the market on their own and make profits, it is generally more advisable to consult fund managers who can do the hard work of keeping pace with markets.

Investment successes may have different definitions to different people, with FMs, varying client’s expectations can be customized to yield a common goal — coming out of the encompassing recession stronger with profits to show.