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2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44
The easiest way to achieve freedom while earning passive income is to trust a professional to invest your money. However, even the most reputable asset managers can lose your funds. In order not to get into a similar situation, it is necessary to carefully check every detail.
Why does your money need a manager
An asset manager is a person who professionally invests your money, taking a small percentage of the profits for it.
What is the benefit? If you do not have the time or interest to study investing, but you want to increase your funds, then using trust management services is the best option.
What to look for when choosing
1. Experience
Nobody wants to give a lot of money to an inexperienced and young manager. We all want to deal with professionals.
The ideal choice is managers who have profit indicators of three years or more. The most reliable ones are ready to provide profitability for 7-10 years.
Many who did not pay attention to this factor gave their money to highly profitable and aggressive managers. For one or two months, luck was still on the side of investors, but sooner or later the funds were lost by gambling speculators.
2. The size of the risk
Anyone, even the most reliable manager, can show negative results, but the risk can be limited. Many companies offer several types of services, including asset management with minimal risk.
As a general rule, the profitability of low-risk strategies does not exceed 30% per annum.
With little risk, there will be less income, but still more than on a bank deposit. Management strategies with high risk and high annual interest rates rarely lead to the expected result.
3. Reliability of a brokerage company
The reputation of the organization in which the asset will be managed cannot be ignored. It is obvious that giving money to young companies or a person alone on the basis of an agreement is not the best option.
Whatever results are announced, there is always a chance to run out of money and start running around the courts.
Here's what to look out for:
- Major banks and brokerage firms. Unfortunately, not everyone is available, since the management accepts amounts of several million rubles or more.
- Highly respected management companies and investment funds. The amount of entry is more acceptable, but there are restrictions.
- Officially registered forex dealers. Suitable for those with a very small start-up capital.
Regarding the Forex market, it is worth saying that earlier companies in this area kept themselves only due to their reputation and this caused a lot of mistrust. Now the Federal Law No. 39 "On the Securities Market" has come into force, which regulates the activities of forex dealers, and its practical implementation in Russia has already begun. For people with little capital, this is a chance to try their hand at investing.
Considering these criteria, you will significantly secure your investment. In addition, you will be able to avoid disappointment, get the opportunity to achieve the cherished freedom and harmony, as well as direct your energies to the realization of your real desires.
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