Most individuals aim to invest a reasonable amount of their assets for the future, in a way that ensures adequate growth and capital preservation. But investing can be very hard and many struggle to find how best to meet their investment goals, especially
when they attempt to do so themselves.
This is why it makes a lot of sense to take advantage of discretionary investment firms.
Discretionary investment is a system of professional wealth management where investments are carried out actively by a discretionary investment firm on behalf of their clients by bringing together a qualified investment team and proposing a tested and trusted
investment framework. There is certainly a case for discretionary investing especially as most individuals lack the financial know how, time and experience to efficiently invest themselves.
As a case study we will discuss the case for discretionary investment management and the benefits of investing under a discretionary investment firm like
1. Their Advanced Investment Techniques
They have advanced means by which they set up themselves to manage your funds as effectively as possible. They take part in more alternative strategies like high frequency trading which is known to be a more liquid form of investing in comparison to more
As an investor interested in the profit potential of derivatives trading, investing under a firm like this would definitely put you at an advantage, as they have the expertise, experience and pool of resources to invest in sophisticated tools that ensure
You gain the advantage of profiting of various strategies that you otherwise may have not been able to access on your own. Inter-bank lending for example, is a secured lending strategy the firm engages in which offers very attractive levels of return on
investment with minimal risk.
However this strategy is impossible to be assessed by an individual investor as it is exclusive to financial institutions only.
3. Investor Protection
You can be confident of a higher level of expertise in risk management and capital protection. From computerized risk management to professional risk analysts, you are more likely to invest securely without the risk of loss when your assets are under the
control of professionals, than when you attempt to do so yourself or invest in markets or areas you are unfamiliar with.
4. Quality Financial Advice
Access to investment advisers who are well experienced and skilled in investing can provide you with unique information on how to meet your investment goals much quicker and efficiently.
The experienced advisors tend to analyze your laid out requirements which can include a full review of all your current financial needs, circumstances around your current investments and guidance on tax efficient allocation of your assets. As well as help
out with any clarifications you might need concerning investing under the firm.