We must never forget how important such as the choice of investing in equities, fixed income, invest in mutual funds or any other financial asset, so it is the right choice of the manager responsible for managing our capital for such investment.
Each manager has his own philosophy and belief when making their particular investment strategies, which often limit their market niches where they are safer in their operational or can think of getting greater rewards, in turn, preventing further risk to the financial interests of their clients. The specialization of the portfolios as standard management will usually generate benefits in the final results, all logically is what you want to the customer -investor look like such investment specialization allows the manager to focus their operating in a defined way in advance and which should not deviate to meet its objectives.
To determine if the manager meets our ideas or investment strategies, we should check some circumstances and our investment philosophy concepts before depositing capital management. Today for our small and medium investors, let’s get to know some of them, which can help us in making the decision to deposit the money in a trust, determined Portfolio Manager. These are:
Risk control: The main idea is to get the highest possible return (logically) to do this, we should check if the historical performance of the product is above average in periods of crisis or market downtrend. Why in down times? … Because the ability of a manager is found in the risk/return balance in situations of market stress and not when the upward tendency of the same one allows to a major exhibition on the risk to accompany profitability superior to the average of the sector.
Studies Macro-economic: To achieve investment success the manager must submit detailed and specific study of the companies chosen for the composition of their portfolios, only the total knowledge of the chosen entities, valuations and market development can generate the desired gains, and therefore financial value for the customer. The general structures of investment portfolios must be specially configured to ensure equity fleeing dangerous high concentrations of values from the same economic or financial sector.The existence of specific products: To avoid unpleasant financial surprises later, the customer must verify that the manager has specific products targeted to certain assets, commodities, currencies, technology stocks, etc. Investing in these sectors, the manager will perform the job performance and management for which it has contracted to do, knowing to maximize that investment. However, there are often products or balanced funds where we can invest in several different assets, for better diversification, according to each client’s investment planning itself.