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Funds Management and Potfolio Selection - Assignment Example

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Investing one’s wealth is one of the most important decisions that are being made as it involves the careful evaluation of the various strategies and instruments which not only preserve the original capital of the individual but also provide a consistent return over the period…
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Funds Management and Potfolio Selection
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"Funds Management and Potfolio Selection"

Download file to see previous pages that not all the investors have the necessary time and knowledge to search the market and identify different assets which can yield consistent results for them. In order to overcome such situations, intermediaries offer their services which include a range of services including offering advice as well as tailoring the portfolio for the individual investors according to the requirements of the investors. Fund management is one type of financial intermediation which can help investors to mange their wealth in a manner that not only provides the consistent returns but also preserve the capital of the investors.
Investment fund industry in Australia has grown recently and as such the growth has resulted into the formation of a mutli-billionaire industry at the global level. The essential feature of the fund managers running such investment funds is to offer the services of managing the money on behalf of their clients because they develop expertise as well as knowledge of the market which ordinary investors lack.
Fund management is often considered as the professional management of the different securities as well as assets in order to meet the specific goals of the investors. Funds are often created for specific purposes with very well define investment goals and objectives. Funds often also outline their strategies as to how the investment process will be carried out to achieve such objectives. For example, if the objectives of the fund are to provide consistent results with minimum risk, the fund may clearly outline that it will invest into government securities or money market so that the overall risk profile of the portfolio remains within acceptable limits.
Fund management industry is typically dominated by small as well as large players which cater to the specific needs of the various groups of customers and offer specialized services by creating specific niche markets for themselves. Typically, a fund charges commission on the transactions carried by it ...Download file to see next pagesRead More
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