The financial crisis and the associated monetary losses forced citizens to pay more attention to the opportunities provided by asset management. Among the clients of management companies there are those who intend to competently dispose of relatively small funds: inheritance, pension savings.
On the market, you can find a huge number of ways to invest money: from operations in the foreign exchange market to investing in advertising or payment terminals. To preserve and increase capital, you need to find adequate financial instruments. But it is extremely difficult for an ordinary citizen who does not have sufficient knowledge and experience to make such a choice. By independently managing money, the average investor runs the risk of losing it.
Trust management of funds is understood to mean their transfer to a certain authorized person who provides the owner of the money with a profit for some remuneration. The foundations of such economic relations are spelled out in the Civil Code of the Russian Federation. The object of management can be a variety of types of property: securities, enterprises, some property rights and, of course, cash.
At present, any amount can be transferred to trust management, not just solid money capital. Investments carried out by management companies are able to save and even increase savings, which makes trust management a good insurance against economic troubles.
Cash management can be active, passive and mixed. With passive management, investments are formed with the participation of the client. The list of investments depends on whether the client is ready to share responsibility for risks with the management company. In this mode of cooperation, the manager does not have the right to change the composition of the investment without the client's permission. Passive money management gives good results over long periods of time.
In the short term, active money management strategies are most often resorted to. In this case, the decision to change the structure of the investment portfolio is made by the manager. By informing the client about the most important decisions made, he has the right not to notify the owner of the money about specific transactions. The risks in this kind of business are slightly higher than in passive management.
The benefits of trust management are obvious. When investing in the market privately, the owner of the assets is forced to independently study the situation, make forecasts and, on this basis, make a decision to purchase assets. With trust management, all this work is performed by a qualified manager. The investor only needs to first find out the reputation of the company to which he intends to entrust his funds.
Other advantages of cooperation with the management company: saving the investor's time, individual approach, high mobility and efficiency of the management structure. Operations with money can be made at the first request from the client. An experienced manager is able to notice negative reactions of the market earlier than an inexperienced private investor.
Trust management services can only be provided by a licensed brokerage company. When choosing a manager, it is necessary to pay attention to intermediaries with long-term experience in the market and a solid reputation. A private investor is able to obtain a number of useful information from the reports of management companies, which can be found in the public domain.
